Mark Enyedy became the CEO of ImmunoGen, Inc. (NASDAQ:IMGN) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mark Enyedy's Compensation Compare With Similar Sized Companies?
Our data indicates that ImmunoGen, Inc. is worth US$823m, and total annual CEO compensation was reported as US$8.8m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$687k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.6m.
As you can see, Mark Enyedy is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ImmunoGen, Inc. is paying too much. 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 ImmunoGen has changed from year to year.
Is ImmunoGen, Inc. Growing?
On average over the last three years, ImmunoGen, Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). In the last year, its revenue is down 36%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has ImmunoGen, Inc. Been A Good Investment?
Most shareholders would probably be pleased with ImmunoGen, Inc. for providing a total return of 97% over three years. 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 compared the total CEO remuneration paid by ImmunoGen, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if ImmunoGen 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.
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