argenx SE's (EBR:ARGX) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• argenx's Annual General Meeting to take place on 7th of May
• Salary of US$655.8k is part of CEO Tim Van Hauwermeiren's total remuneration
• Total compensation is similar to the industry average
• argenx's total shareholder return over the past three years was 55% while its EPS grew by 14% over the past three years

The performance at argenx SE (EBR:ARGX) has been quite strong recently and CEO Tim Van Hauwermeiren has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 7th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for argenx

Comparing argenx SE's CEO Compensation With The Industry

According to our data, argenx SE has a market capitalization of €21b, and paid its CEO total annual compensation worth US$12m over the year to December 2023. Notably, that's an increase of 54% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$656k.

On comparing similar companies in the Belgium Biotechs industry with market capitalizations above €7.5b, we found that the median total CEO compensation was US$12m. So it looks like argenx compensates Tim Van Hauwermeiren in line with the median for the industry. What's more, Tim Van Hauwermeiren holds €39m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$656k	US$639k	5%
Other	US$11m	US$7.1m	95%
Total Compensation	US$12m	US$7.8m	100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. argenx sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

argenx SE's Growth

argenx SE has seen its earnings per share (EPS) increase by 14% a year over the past three years. In the last year, its revenue is up 188%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has argenx SE Been A Good Investment?

We think that the total shareholder return of 55%, over three years, would leave most argenx SE shareholders smiling. 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.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for argenx that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.