Lonnel Coats has been the CEO of Lexicon Pharmaceuticals Inc (NASDAQ:LXRX) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Lonnel Coats’s Compensation Compare With Similar Sized Companies?
Our data indicates that Lexicon Pharmaceuticals Inc is worth US$858m, and total annual CEO compensation is US$2.2m. That’s a fairly small increase of 1.7% on year before. 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$2.3m.
So Lonnel Coats receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Lexicon Pharmaceuticals has changed over time.
Is Lexicon Pharmaceuticals Inc Growing?
Lexicon Pharmaceuticals Inc has reduced its earnings per share by an average of 43% a year, over the last three years. Its revenue is down -1.8% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Lexicon Pharmaceuticals Inc Been A Good Investment?
With a three year total loss of 42%, Lexicon Pharmaceuticals Inc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Lonnel Coats is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don’t think the CEO is underpaid!
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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.