Is Exact Sciences Corporation’s (NASDAQ:EXAS) CEO Being Overpaid?

Kevin Conroy became the CEO of Exact Sciences Corporation (NASDAQ:EXAS) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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 Exact Sciences

How Does Kevin Conroy’s Compensation Compare With Similar Sized Companies?

Our data indicates that Exact Sciences Corporation is worth US$9.2b, and total annual CEO compensation is US$13m. That’s a notable increase of 315% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12.0b. The median total CEO compensation was US$7m.

Thus we can conclude that Kevin Conroy receives more in total compensation than the median of a group of companies in the same market, and of similar size to Exact Sciences Corporation. 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.

You can see a visual representation of the CEO compensation at Exact Sciences, below.

NasdaqCM:EXAS CEO Compensation November 13th 18
NasdaqCM:EXAS CEO Compensation November 13th 18

Is Exact Sciences Corporation Growing?

Over the last three years Exact Sciences Corporation has grown its earnings per share (EPS) by an average of 21% per year. In the last year, its revenue is up 87%.

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. So this free report on the analyst consensus forecasts could help you make a master move on this stock.

Has Exact Sciences Corporation Been A Good Investment?

Boasting a total shareholder return of 705% over three years, Exact Sciences Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared the total CEO remuneration paid by Exact Sciences Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Sometimes, highly paid CEOs create a lot of value for shareholders. Still, shareholders might want to check if insiders have been selling.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.