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Is QIAGEN N.V. (NYSE:QGEN) Overpaying Its CEO?

Simply Wall St

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Peer Schatz has been the CEO of QIAGEN N.V. (NYSE:QGEN) since 2004. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for QIAGEN

How Does Peer Schatz's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that QIAGEN N.V. has a market cap of US$8.9b, and is paying total annual CEO compensation of US$2.0m. (This is based on the year to December 2018). That's a modest increase of 4.3% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.3m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.

Most shareholders would consider it a positive that Peer Schatz takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

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

NYSE:QGEN CEO Compensation, June 17th 2019

Is QIAGEN N.V. Growing?

QIAGEN N.V. has increased its earnings per share (EPS) by an average of 9.9% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.7%.

I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.

Has QIAGEN N.V. Been A Good Investment?

Boasting a total shareholder return of 92% over three years, QIAGEN N.V. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

It appears that QIAGEN N.V. remunerates its CEO below most similar sized companies.

It's well worth noting that while Peer Schatz is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Whatever your view on compensation, you might want to check if insiders are buying or selling QIAGEN shares (free trial).

Important note: QIAGEN 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.

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.