Dan Browne has been the CEO of Revance Therapeutics Inc (NASDAQ:RVNC) since 2002. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dan Browne’s Compensation Compare With Similar Sized Companies?
According to our data, Revance Therapeutics Inc has a market capitalization of US$803m, and pays its CEO total annual compensation worth US$3.4m. We note that’s an increase of 17% above last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.2m.
It would therefore appear that Revance Therapeutics Inc pays Dan Browne more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Revance Therapeutics, below.
Is Revance Therapeutics Inc Growing?
On average over the last three years, Revance Therapeutics Inc has shrunk earnings per share by 13% each year. In the last year, its revenue is up 993%.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Revance Therapeutics Inc Been A Good Investment?
Given the total loss of 47% over three years, many shareholders in Revance Therapeutics Inc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Revance 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.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. This contrasts with the growth in CEO remuneration, in the last year. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Revance Therapeutics Inc shares with their own money (free access).
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.