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Is TG Therapeutics Inc’s (NASDAQ:TGTX) CEO Overpaid Relative To Its Peers?

In 2011 Mike Weiss was appointed CEO of TG Therapeutics Inc (NASDAQ:TGTX). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. 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.

See our latest analysis for TG Therapeutics

How Does Mike Weiss’s Compensation Compare With Similar Sized Companies?

Our data indicates that TG Therapeutics Inc is worth US$387m, and total annual CEO compensation is US$9.9m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$525k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO compensation was US$1.6m.

As you can see, Mike Weiss is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TG Therapeutics Inc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at TG Therapeutics, below.

NasdaqCM:TGTX CEO Compensation December 4th 18

Is TG Therapeutics Inc Growing?

On average over the last three years, TG Therapeutics Inc has shrunk earnings per share by 17% each year. In the last year, its revenue changed by just 0.2%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

You might want to check this free visual report on analyst forecasts for future earnings.

Has TG Therapeutics Inc Been A Good Investment?

Given the total loss of 61% over three years, many shareholders in TG Therapeutics Inc are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We compared total CEO remuneration at TG Therapeutics Inc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if TG Therapeutics insiders are buying or selling shares.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

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 editorial-team@simplywallst.com.