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Does SCYNEXIS, Inc.'s (NASDAQ:SCYX) CEO Salary Reflect Performance?

Simply Wall St

Marco Taglietti has been the CEO of SCYNEXIS, Inc. (NASDAQ:SCYX) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for SCYNEXIS

How Does Marco Taglietti's Compensation Compare With Similar Sized Companies?

Our data indicates that SCYNEXIS, Inc. is worth US$58m, and total annual CEO compensation is US$1.1m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$527k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$483k.

It would therefore appear that SCYNEXIS, Inc. pays Marco Taglietti more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at SCYNEXIS has changed over time.

NasdaqGM:SCYX CEO Compensation, August 14th 2019

Is SCYNEXIS, Inc. Growing?

On average over the last three years, SCYNEXIS, Inc. has grown earnings per share (EPS) by 51% each year (using a line of best fit). Its revenue is down -3.1% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.

Has SCYNEXIS, Inc. Been A Good Investment?

With a three year total loss of 60%, SCYNEXIS, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at SCYNEXIS, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling SCYNEXIS shares (free trial).

Important note: SCYNEXIS may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.