Is TherapeuticsMD, Inc.’s (NASDAQ:TXMD) CEO Paid Enough Relative To Peers?

Rob Finizio became the CEO of TherapeuticsMD, Inc. (NASDAQ:TXMD) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for TherapeuticsMD

How Does Rob Finizio’s Compensation Compare With Similar Sized Companies?

Our data indicates that TherapeuticsMD, Inc. is worth US$1.3b, and total annual CEO compensation is US$3.0m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$600k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.5m.

So Rob Finizio receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.

The graphic below shows how CEO compensation at TherapeuticsMD has changed from year to year.

NASDAQGS:TXMD CEO Compensation January 25th 19
NASDAQGS:TXMD CEO Compensation January 25th 19

Is TherapeuticsMD, Inc. Growing?

TherapeuticsMD, Inc. has increased its earnings per share (EPS) by an average of 3.6% a year, over the last three years (using a line of best fit). It saw its revenue drop -12% over the last year.

I generally like to see a little revenue growth, but it is good to see EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.

Has TherapeuticsMD, Inc. Been A Good Investment?

With a three year total loss of 26%, TherapeuticsMD, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Rob Finizio is paid around the same as most CEOs of similar size companies.

The per share growth could be better, in our view. And it’s hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if TherapeuticsMD insiders are buying or selling shares.

Important note: TherapeuticsMD 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.

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 editorial-team@simplywallst.com.