Here's What We Learned About The CEO Pay At Celldex Therapeutics, Inc. (NASDAQ:CLDX)

This article will reflect on the compensation paid to Anthony Marucci who has served as CEO of Celldex Therapeutics, Inc. (NASDAQ:CLDX) since 2008. This analysis will also assess whether Celldex Therapeutics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Celldex Therapeutics

How Does Total Compensation For Anthony Marucci Compare With Other Companies In The Industry?

According to our data, Celldex Therapeutics, Inc. has a market capitalization of US$861m, and paid its CEO total annual compensation worth US$1.1m over the year to December 2019. Notably, that's a decrease of 19% over the year before. Notably, the salary which is US$619.5k, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.5m. This suggests that Anthony Marucci is paid below the industry median. Furthermore, Anthony Marucci directly owns US$423k worth of shares in the company.

On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. Celldex Therapeutics is paying a higher share of its remuneration through a salary in comparison to the overall 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.

A Look at Celldex Therapeutics, Inc.'s Growth Numbers

Over the past three years, Celldex Therapeutics, Inc. has seen its earnings per share (EPS) grow by 65% per year. In the last year, its revenue is up 1.8%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Celldex Therapeutics, Inc. Been A Good Investment?

Since shareholders would have lost about 52% over three years, some Celldex Therapeutics, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Celldex Therapeutics, Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But shareholders will likely want to hold off on any raise for Anthony until investor returns are positive.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 2 which are significant) in Celldex Therapeutics we think you should know about.

Important note: Celldex Therapeutics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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