Thomas Schall has been the CEO of ChemoCentryx, Inc. (NASDAQ:CCXI) since 1997. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Thomas Schall’s Compensation Compare With Similar Sized Companies?
Our data indicates that ChemoCentryx, Inc. is worth US$2.7b, and total annual CEO compensation was reported as US$3.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$617k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$4.9m.
So Thomas Schall receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at ChemoCentryx has changed over time.
Is ChemoCentryx, Inc. Growing?
On average over the last three years, ChemoCentryx, Inc. has grown earnings per share (EPS) by 2.1% each year (using a line of best fit). It saw its revenue drop 61% over the last year.
I would prefer it if there was revenue growth, but I’m happy with the EPS 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has ChemoCentryx, Inc. Been A Good Investment?
Most shareholders would probably be pleased with ChemoCentryx, Inc. for providing a total return of 610% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Thomas Schall is close enough to the median pay for a CEO of a similar sized company .
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ChemoCentryx.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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