Jeff Nugent became the CEO of Sientra, Inc. (NASDAQ:SIEN) in 2015. 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 Jeff Nugent's Compensation Compare With Similar Sized Companies?
According to our data, Sientra, Inc. has a market capitalization of US$335m, and pays its CEO total annual compensation worth US$3.0m. (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$636k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.9m.
It would therefore appear that Sientra, Inc. pays Jeff Nugent 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Sientra, below.
Is Sientra, Inc. Growing?
Sientra, Inc. has reduced its earnings per share by an average of 8.0% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 39%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sientra, Inc. Been A Good Investment?
Given the total loss of 17% over three years, many shareholders in Sientra, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Sientra, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sientra.
Important note: Sientra 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.
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