How Much Is Senseonics Holdings' (NYSEMKT:SENS) CEO Getting Paid?

This article will reflect on the compensation paid to Tim Goodnow who has served as CEO of Senseonics Holdings, Inc. (NYSEMKT:SENS) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Senseonics Holdings.

View our latest analysis for Senseonics Holdings

How Does Total Compensation For Tim Goodnow Compare With Other Companies In The Industry?

Our data indicates that Senseonics Holdings, Inc. has a market capitalization of US$103m, and total annual CEO compensation was reported as US$2.2m for the year to December 2019. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$536k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$556k. Accordingly, our analysis reveals that Senseonics Holdings, Inc. pays Tim Goodnow north of the industry median. Moreover, Tim Goodnow also holds US$318k worth of Senseonics Holdings stock directly under their own name.

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. It's interesting to note that Senseonics Holdings pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Senseonics Holdings, Inc.'s Growth Numbers

Senseonics Holdings, Inc. has seen its earnings per share (EPS) increase by 1.4% a year over the past three years. It saw its revenue drop 49% over the last year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Senseonics Holdings, Inc. Been A Good Investment?

Given the total shareholder loss of 84% over three years, many shareholders in Senseonics Holdings, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Senseonics Holdings, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we have not been overly impressed by the business performance, the shareholder returns have been utterly depressing, over the last three years. This doesn't look great when you consider Tim is taking home compensation north of the industry average. With such poor returns, we would understand if shareholders had concerns related to the CEO's pay.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Senseonics Holdings we think you should know about.

Switching gears from Senseonics Holdings, 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. 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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