Sean McCarthy became the CEO of CytomX Therapeutics Inc (NASDAQ:CTMX) in 2011. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Sean McCarthy’s Compensation Compare With Similar Sized Companies?
Our data indicates that CytomX Therapeutics Inc is worth US$651m, and total annual CEO compensation is US$3.2m. We note that’s an increase of 8.5% 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.
As you can see, Sean McCarthy is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CytomX Therapeutics Inc is paying too much. 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 CytomX Therapeutics, below.
Is CytomX Therapeutics Inc Growing?
On average over the last three years, CytomX Therapeutics Inc has grown earnings per share (EPS) by 115% each year. It achieved revenue growth of 48% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
It could be important to check this free visual depiction of what analysts expect for the future.
Has CytomX Therapeutics Inc Been A Good Investment?
With a three year total loss of 17%, CytomX Therapeutics Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount CytomX Therapeutics 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. 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.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 firstname.lastname@example.org.