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Is GenMark Diagnostics, Inc.'s (NASDAQ:GNMK) CEO Pay Fair?
Hany Massarany has been the CEO of GenMark Diagnostics, Inc. (NASDAQ:GNMK) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for GenMark Diagnostics
How Does Hany Massarany's Compensation Compare With Similar Sized Companies?
According to our data, GenMark Diagnostics, Inc. has a market capitalization of US$327m, and pays its CEO total annual compensation worth US$3.3m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$512k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.9m.
As you can see, Hany Massarany is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean GenMark Diagnostics, 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 GenMark Diagnostics has changed from year to year.
Is GenMark Diagnostics, Inc. Growing?
On average over the last three years, GenMark Diagnostics, Inc. has grown earnings per share (EPS) by 5.3% each year (using a line of best fit). It achieved revenue growth of 18% over the last year.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable.
Has GenMark Diagnostics, Inc. Been A Good Investment?
With a three year total loss of 40%, GenMark Diagnostics, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at GenMark Diagnostics, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling GenMark Diagnostics (free visualization of insider trades).
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 editorial-team@simplywallst.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.
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