We Take A Look At Whether argenx SE's (EBR:ARGX) CEO May Be Underpaid

Key Insights

• argenx's Annual General Meeting to take place on 27th of May
• CEO Tim Van Hauwermeiren's total compensation includes salary of US$757.7k
• The total compensation is 39% less than the average for the industry
• argenx's total shareholder return over the past three years was 75% while its EPS grew by 98% over the past three years

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The impressive results at argenx SE (EBR:ARGX) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 27th of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for argenx

Comparing argenx SE's CEO Compensation With The Industry

Our data indicates that argenx SE has a market capitalization of €31b, and total annual CEO compensation was reported as US$7.8m for the year to December 2024. Notably, that's a decrease of 35% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$758k.

On comparing similar companies in the Belgium Biotechs industry with market capitalizations above €7.1b, we found that the median total CEO compensation was US$13m. Accordingly, argenx pays its CEO under the industry median. What's more, Tim Van Hauwermeiren holds €27m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$758k	US$656k	10%
Other	US$7.1m	US$11m	90%
Total Compensation	US$7.8m	US$12m	100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. It's interesting to note that argenx allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at argenx SE's Growth Numbers

argenx SE has seen its earnings per share (EPS) increase by 98% a year over the past three years. It achieved revenue growth of 82% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has argenx SE Been A Good Investment?

Most shareholders would probably be pleased with argenx SE for providing a total return of 75% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

Shareholders may want to check for free if argenx insiders are buying or selling shares.

Switching gears from argenx, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.