In 2015 Briggs Morrison was appointed CEO of Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX). 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. 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?
According to our data, Syndax Pharmaceuticals, Inc. has a market capitalization of US$153m, and pays its CEO total annual compensation worth US$1.7m. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$550k. 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$930k.
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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
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 154% a year, over the last three years (using a line of best fit). It achieved revenue growth of 91% over the last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Syndax Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 49%, Syndax Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Syndax Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Syndax Pharmaceuticals insiders are buying or selling shares.
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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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.