Shareholders May Be Wary Of Increasing 10x Genomics, Inc.'s (NASDAQ:TXG) CEO Compensation Package

Key Insights

• 10x Genomics' Annual General Meeting to take place on 3rd of June
• CEO Serge Saxonov's total compensation includes salary of US$625.3k
• The total compensation is 46% higher than the average for the industry
• Over the past three years, 10x Genomics' EPS fell by 11% and over the past three years, the total loss to shareholders 84%

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The results at 10x Genomics, Inc. (NASDAQ:TXG) have been quite disappointing recently and CEO Serge Saxonov bears some responsibility for this. At the upcoming AGM on 3rd of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for 10x Genomics

How Does Total Compensation For Serge Saxonov Compare With Other Companies In The Industry?

At the time of writing, our data shows that 10x Genomics, Inc. has a market capitalization of US$1.0b, and reported total annual CEO compensation of US$7.9m for the year to December 2024. That's slightly lower by 4.3% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$625k.

On comparing similar companies from the American Life Sciences industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$5.4m. This suggests that Serge Saxonov is paid more than the median for the industry. Furthermore, Serge Saxonov directly owns US$33m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. It's interesting to note that 10x Genomics allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

10x Genomics, Inc.'s Growth

10x Genomics, Inc. has reduced its earnings per share by 11% a year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is not a very positive result for shareholders. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has 10x Genomics, Inc. Been A Good Investment?

With a total shareholder return of -84% over three years, 10x Genomics, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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. That's why we did some digging and identified 1 warning sign for 10x Genomics that you should be aware of before investing.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.