It would be hard to discount the role that CEO E. Hrusovsky has played in delivering the impressive results at Quanterix Corporation (NASDAQ:QTRX) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 24 June 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
How Does Total Compensation For E. Hrusovsky Compare With Other Companies In The Industry?
Our data indicates that Quanterix Corporation has a market capitalization of US$2.3b, and total annual CEO compensation was reported as US$3.5m for the year to December 2020. That's a slight decrease of 3.0% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$554k.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$3.5m. This suggests that Quanterix remunerates its CEO largely in line with the industry average. What's more, E. Hrusovsky holds US$54m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Quanterix is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Quanterix Corporation's Growth
Quanterix Corporation has seen its earnings per share (EPS) increase by 30% a year over the past three years. Its revenue is up 63% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Quanterix Corporation Been A Good Investment?
We think that the total shareholder return of 309%, over three years, would leave most Quanterix Corporation shareholders smiling. 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.
Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 4 warning signs for Quanterix that investors should be aware of in a dynamic business environment.
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.
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