How Much Is NexgenRx's (CVE:NXG) CEO Getting Paid?

Ron Loucks became the CEO of NexgenRx Inc. (CVE:NXG) in 2003, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for NexgenRx

How Does Total Compensation For Ron Loucks Compare With Other Companies In The Industry?

According to our data, NexgenRx Inc. has a market capitalization of CA$15m, and paid its CEO total annual compensation worth CA$181k over the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of CA$165.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below CA$257m, reported a median total CEO compensation of CA$722k. Accordingly, NexgenRx pays its CEO under the industry median. Moreover, Ron Loucks also holds CA$1.6m worth of NexgenRx stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. According to our research, NexgenRx has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

NexgenRx Inc.'s Growth

NexgenRx Inc.'s earnings per share (EPS) grew 80% per year over the last three years. In the last year, its revenue is up 11%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has NexgenRx Inc. Been A Good Investment?

Since shareholders would have lost about 8.3% over three years, some NexgenRx Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, NexgenRx pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Ron is compensated fairly. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for NexgenRx (1 is a bit unpleasant!) that you should be aware of before investing here.

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. 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.
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