Todd Pope became the CEO of TransEnterix Inc (NYSEMKT:TRXC) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Todd Pope’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that TransEnterix Inc has a market cap of US$836m, and is paying total annual CEO compensation of US$3m. Notably, that’s an increase of 22% over the year before. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$1m.
As you can see, Todd Pope is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TransEnterix 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.
The graphic below shows how CEO compensation at TransEnterix has changed from year to year.
Is TransEnterix Inc Growing?
On average over the last three years, TransEnterix Inc has shrunk earnings per share by 6.6% each year. It achieved revenue growth of 192% over the last year.
As investors, we do are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 TransEnterix Inc Been A Good Investment?
With a total shareholder return of 24% over three years, TransEnterix Inc shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at TransEnterix Inc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
We generally prefer to see stronger EPS growth, and we’re not particularly impressed with the total shareholder return, over the last three years. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Shareholders may want to check for free if TransEnterix Inc insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past earnings 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 email@example.com.