Is Chimerix Inc’s (NASDAQ:CMRX) CEO Being Overpaid?

M. Berrey has been the CEO of Chimerix Inc (NASDAQ:CMRX) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.

View our latest analysis for Chimerix

How Does M. Berrey’s Compensation Compare With Similar Sized Companies?

According to our data, Chimerix Inc has a market capitalization of US$172m, and pays its CEO total annual compensation worth US$2m. That’s less than last year. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$904k.

Thus we can conclude that M. Berrey receives more in total compensation than the median of a group of companies in the same market, and of similar size to Chimerix Inc. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

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

NasdaqGM:CMRX CEO Compensation November 9th 18
NasdaqGM:CMRX CEO Compensation November 9th 18

Is Chimerix Inc Growing?

On average over the last three years, Chimerix Inc has grown earnings per share (EPS) by 21% each year. Its revenue is up 7.7% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Chimerix Inc Been A Good Investment?

Since shareholders would have lost about 91% over three years, some Chimerix Inc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We compared total CEO remuneration at Chimerix Inc with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Chimerix Inc.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.