In 2015 Rob Bazemore was appointed CEO of Epizyme, Inc. (NASDAQ:EPZM). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Rob Bazemore's Compensation Compare With Similar Sized Companies?
According to our data, Epizyme, Inc. has a market capitalization of US$1.2b, and pays its CEO total annual compensation worth US$3.7m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$576k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
Thus we can conclude that Rob Bazemore receives more in total compensation than the median of a group of companies in the same market, and of similar size to Epizyme, Inc.. However, this doesn't necessarily mean the pay 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 Epizyme has changed over time.
Is Epizyme, Inc. Growing?
On average over the last three years, Epizyme, Inc. has grown earnings per share (EPS) by 3.4% each year (using a line of best fit). It achieved revenue growth of 96% over the last year.
I like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! It could be important to check this free visual depiction of what analysts expect for the future.
Has Epizyme, Inc. Been A Good Investment?
Boasting a total shareholder return of 57% over three years, Epizyme, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Epizyme, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Epizyme insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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