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Briggs Morrison has been the CEO of Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) since 2015. 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Briggs Morrison’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Syndax Pharmaceuticals, Inc. has a market cap of US$234m, and is paying total annual CEO compensation of US$2.1m. (This figure is for the year to December 2018). That’s a notable increase of 24% on last year. While we always look at total compensation first, we note that the salary component is less, at US$566k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.2m.
It would therefore appear that Syndax Pharmaceuticals, Inc. pays Briggs Morrison more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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, below, how CEO compensation at Syndax Pharmaceuticals has changed over time.
Is Syndax Pharmaceuticals, Inc. Growing?
Syndax Pharmaceuticals, Inc. has increased its earnings per share (EPS) by an average of 121% a year, over the last three years (using a line of best fit). Its revenue is down -30% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Syndax Pharmaceuticals, Inc. Been A Good Investment?
Since shareholders would have lost about 4.7% over three years, some Syndax Pharmaceuticals, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Syndax Pharmaceuticals, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of 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. This contrasts with the growth in CEO remuneration, in the last year. 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. Shareholders may want to check for free if Syndax Pharmaceuticals insiders are buying or selling shares.
Important note: Syndax Pharmaceuticals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.