Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Sandy Macrae became the CEO of Sangamo Therapeutics, Inc. (NASDAQ:SGMO) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Sandy Macrae’s Compensation Compare With Similar Sized Companies?
Our data indicates that Sangamo Therapeutics, Inc. is worth US$914m, and total annual CEO compensation is US$1.8m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$612k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO compensation of that group was US$2.2m.
So Sandy Macrae receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Sangamo Therapeutics has changed over time.
Is Sangamo Therapeutics, Inc. Growing?
Sangamo Therapeutics, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. It achieved revenue growth of 118% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sangamo Therapeutics, Inc. Been A Good Investment?
I think that the total shareholder return of 65%, over three years, would leave most Sangamo Therapeutics, Inc. 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.
Sandy Macrae is paid around the same as most CEOs of similar size companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. So you may want to check if insiders are buying Sangamo Therapeutics shares with their own money (free access).
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 email@example.com.