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Here's Why MacroGenics, Inc.'s (NASDAQ:MGNX) CEO Might See A Pay Rise Soon

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The decent performance at MacroGenics, Inc. (NASDAQ:MGNX) recently will please most shareholders as they go into the AGM coming up on 13 May 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for MacroGenics

How Does Total Compensation For Scott Koenig Compare With Other Companies In The Industry?

According to our data, MacroGenics, Inc. has a market capitalization of US$2.0b, and paid its CEO total annual compensation worth US$3.1m over the year to December 2020. Notably, that's a decrease of 34% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$656k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$4.6m. Accordingly, MacroGenics pays its CEO under the industry median. Moreover, Scott Koenig also holds US$37m worth of MacroGenics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2020

2019

Proportion (2020)

Salary

US$656k

US$590k

21%

Other

US$2.5m

US$4.1m

79%

Total Compensation

US$3.1m

US$4.7m

100%

On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. There isn't a significant difference between MacroGenics and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

MacroGenics, Inc.'s Growth

Over the last three years, MacroGenics, Inc. has shrunk its earnings per share by 19% per year. Its revenue is up 58% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MacroGenics, Inc. Been A Good Investment?

We think that the total shareholder return of 61%, over three years, would leave most MacroGenics, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for MacroGenics that investors should look into moving forward.

Important note: MacroGenics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.