Dan Gold became the CEO of MEI Pharma Inc (NASDAQ:MEIP) in 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dan Gold’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that MEI Pharma Inc has a market cap of US$198m, and is paying total annual CEO compensation of US$3.0m. (This is based on the year to 2018). Notably, that’s an increase of 132% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$592k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$927k.
Thus we can conclude that Dan Gold receives more in total compensation than the median of a group of companies in the same market, and of similar size to MEI Pharma Inc. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at MEI Pharma has changed from year to year.
Is MEI Pharma Inc Growing?
MEI Pharma Inc saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease. It saw its revenue drop -92% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has MEI Pharma Inc Been A Good Investment?
Most shareholders would probably be pleased with MEI Pharma Inc for providing a total return of 61% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount MEI Pharma Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
However, we can’t argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling MEI Pharma (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.