Is Syndax Pharmaceuticals, Inc.’s (NASDAQ:SNDX) CEO Pay Justified?

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Briggs Morrison became the CEO of Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.

See our latest analysis for Syndax Pharmaceuticals

How Does Briggs Morrison’s Compensation Compare With Similar Sized Companies?

Our data indicates that Syndax Pharmaceuticals, Inc. is worth US$234m, and total annual CEO compensation is US$2.1m. (This is based on the year to December 2018). Notably, that’s an increase of 24% over the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$566k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.

Thus we can conclude that Briggs Morrison receives more in total compensation than the median of a group of companies in the same market, and of similar size to Syndax Pharmaceuticals, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Syndax Pharmaceuticals, below.

NasdaqGS:SNDX CEO Compensation, June 25th 2019
NasdaqGS:SNDX CEO Compensation, June 25th 2019

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.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Syndax Pharmaceuticals, Inc. Been A Good Investment?

With a three year total loss of 4.7%, Syndax Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We examined the amount Syndax Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. 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. So you may want to check if insiders are buying Syndax Pharmaceuticals 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.

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 editorial-team@simplywallst.com. 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.