Does Epigenomics AG's (ETR:ECX) CEO Salary Compare Well With Others?

Greg Hamilton became the CEO of Epigenomics AG (ETR:ECX) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Epigenomics

How Does Greg Hamilton's Compensation Compare With Similar Sized Companies?

Our data indicates that Epigenomics AG is worth €52m, and total annual CEO compensation was reported as €962k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at €349k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under €181m, and the median CEO total compensation was €227k.

Thus we can conclude that Greg Hamilton receives more in total compensation than the median of a group of companies in the same market, and of similar size to Epigenomics AG. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Epigenomics has changed over time.

Is Epigenomics AG Growing?

Epigenomics AG has increased its earnings per share (EPS) by an average of 8.9% a year, over the last three years (using a line of best fit). Its revenue is down -32% over last year.

I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch.

Has Epigenomics AG Been A Good Investment?

With a three year total loss of 69%, Epigenomics AG would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Epigenomics AG pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. 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. Shareholders may want to check for free if Epigenomics insiders are buying or selling shares.

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.