Karen Zaderej has been the CEO of AxoGen, Inc. (NASDAQ:AXGN) since 2011. 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.
How Does Karen Zaderej's Compensation Compare With Similar Sized Companies?
According to our data, AxoGen, Inc. has a market capitalization of US$558m, and paid its CEO total annual compensation worth US$3.7m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$575k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.8m.
Thus we can conclude that Karen Zaderej receives more in total compensation than the median of a group of companies in the same market, and of similar size to AxoGen, Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at AxoGen has changed over time.
Is AxoGen, Inc. Growing?
AxoGen, Inc. has reduced its earnings per share by an average of 16% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 36% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. You might want to check this free visual report on analyst forecasts for future earnings.
Has AxoGen, Inc. Been A Good Investment?
Boasting a total shareholder return of 60% over three years, AxoGen, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount AxoGen, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying AxoGen shares with their own money (free access).
If you want to buy a stock that is better than AxoGen, this free list of high return, low debt companies is a great place to look.
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 firstname.lastname@example.org. 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.