Does 22nd Century Group, Inc.'s (NYSEMKT:XXII) CEO Salary Compare Well With Others?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Henry Sicignano has been the CEO of 22nd Century Group, Inc. (NYSEMKT:XXII) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for 22nd Century Group

How Does Henry Sicignano's Compensation Compare With Similar Sized Companies?

Our data indicates that 22nd Century Group, Inc. is worth US$257m, and total annual CEO compensation is US$949k. (This number is for the twelve months until December 2018). Notably, that's an increase of 33% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$379k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.

So Henry Sicignano is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

The graphic below shows how CEO compensation at 22nd Century Group has changed from year to year.

Is 22nd Century Group, Inc. Growing?

22nd Century Group, Inc. has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). Its revenue is up 30% over last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has 22nd Century Group, Inc. Been A Good Investment?

I think that the total shareholder return of 148%, over three years, would leave most 22nd Century Group, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Henry Sicignano is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at 22nd Century Group.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.