U.S. Markets open in 5 hrs 57 mins

Is Exelixis, Inc.'s (NASDAQ:EXEL) CEO Being Overpaid?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Michael Morrissey became the CEO of Exelixis, Inc. (NASDAQ:EXEL) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Exelixis

How Does Michael Morrissey's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Exelixis, Inc. has a market cap of US$6.0b, and is paying total annual CEO compensation of US$8.0m. (This figure is for the year to December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$945k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$7.1m.

So Michael Morrissey is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

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

NasdaqGS:EXEL CEO Compensation, May 30th 2019

Is Exelixis, Inc. Growing?

On average over the last three years, Exelixis, Inc. has grown earnings per share (EPS) by 118% each year (using a line of best fit). In the last year, its revenue is up 46%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has Exelixis, Inc. Been A Good Investment?

Boasting a total shareholder return of 193% over three years, Exelixis, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Michael Morrissey is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Exelixis.

If you want to buy a stock that is better than Exelixis, this free list of high return, low debt companies is a great place to look.

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.