U.S. markets open in 16 minutes
  • S&P Futures

    3,812.25
    -4.50 (-0.12%)
     
  • Dow Futures

    31,262.00
    +26.00 (+0.08%)
     
  • Nasdaq Futures

    12,654.25
    -27.50 (-0.22%)
     
  • Russell 2000 Futures

    2,200.50
    -5.30 (-0.24%)
     
  • Crude Oil

    62.49
    +1.21 (+1.97%)
     
  • Gold

    1,712.90
    -2.90 (-0.17%)
     
  • Silver

    26.10
    -0.29 (-1.09%)
     
  • EUR/USD

    1.2044
    -0.0023 (-0.19%)
     
  • 10-Yr Bond

    1.4860
    +0.0160 (+1.09%)
     
  • Vix

    26.23
    +2.13 (+8.84%)
     
  • GBP/USD

    1.3963
    +0.0011 (+0.08%)
     
  • USD/JPY

    107.4600
    +0.4580 (+0.43%)
     
  • BTC-USD

    49,520.87
    -2,700.87 (-5.17%)
     
  • CMC Crypto 200

    992.01
    +4.80 (+0.49%)
     
  • FTSE 100

    6,648.92
    -26.55 (-0.40%)
     
  • Nikkei 225

    28,930.11
    -628.99 (-2.13%)
     

Is Rigel Pharmaceuticals, Inc.'s (NASDAQ:RIGL) CEO Overpaid Relative To Its Peers?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
  • Oops!
    Something went wrong.
    Please try again later.

Raul Rodriguez became the CEO of Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) in 2014. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Rigel Pharmaceuticals

How Does Raul Rodriguez's Compensation Compare With Similar Sized Companies?

Our data indicates that Rigel Pharmaceuticals, Inc. is worth US$362m, and total annual CEO compensation was reported as US$4.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$637k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.

As you can see, Raul Rodriguez is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Rigel Pharmaceuticals, Inc. is paying too much. 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, below, how CEO compensation at Rigel Pharmaceuticals has changed over time.

NasdaqGS:RIGL CEO Compensation, January 10th 2020
NasdaqGS:RIGL CEO Compensation, January 10th 2020

Is Rigel Pharmaceuticals, Inc. Growing?

On average over the last three years, Rigel Pharmaceuticals, Inc. has grown earnings per share (EPS) by 24% each year (using a line of best fit). In the last year, its revenue is up 1129%.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Rigel Pharmaceuticals, Inc. Been A Good Investment?

Given the total loss of 11% over three years, many shareholders in Rigel Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Rigel Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rigel Pharmaceuticals.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.