Is AxoGen, Inc.’s (NASDAQ:AXGN) CEO Pay Fair?

Karen Zaderej has been the CEO of AxoGen, Inc. (NASDAQ:AXGN) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for AxoGen

How Does Karen Zaderej’s Compensation Compare With Similar Sized Companies?

According to our data, AxoGen, Inc. has a market capitalization of US$713m, and pays its CEO total annual compensation worth US$3.7m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$463k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2.2m.

It would therefore appear that AxoGen, Inc. pays Karen Zaderej more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at AxoGen has changed from year to year.

NasdaqCM:AXGN CEO Compensation, February 28th 2019
NasdaqCM:AXGN CEO Compensation, February 28th 2019

Is AxoGen, Inc. Growing?

On average over the last three years, AxoGen, Inc. has shrunk earnings per share by 3.0% each year (measured with a line of best fit). It achieved revenue growth of 39% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It’s hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has AxoGen, Inc. Been A Good Investment?

Boasting a total shareholder return of 245% over three years, AxoGen, Inc. has done well by shareholders. 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.

In Summary…

We compared total CEO remuneration at AxoGen, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AxoGen (free visualization of insider trades).

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.