Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2011 Hany Massarany was appointed CEO of GenMark Diagnostics, Inc. (NASDAQ:GNMK). 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Hany Massarany's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that GenMark Diagnostics, Inc. has a market cap of US$353m, and is paying total annual CEO compensation of US$3.3m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$512k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.8m.
Thus we can conclude that Hany Massarany receives more in total compensation than the median of a group of companies in the same market, and of similar size to GenMark Diagnostics, Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at GenMark Diagnostics has changed from year to year.
Is GenMark Diagnostics, Inc. Growing?
Over the last three years GenMark Diagnostics, Inc. has grown its earnings per share (EPS) by an average of 5.3% per year (using a line of best fit). Its revenue is up 18% over last year.
I think the revenue growth is good. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested in this free visualization of analyst forecasts.
Has GenMark Diagnostics, Inc. Been A Good Investment?
Since shareholders would have lost about 37% over three years, some GenMark Diagnostics, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at GenMark Diagnostics, 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.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if GenMark Diagnostics insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.com. 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.