We Take A Look At Why Quanterix Corporation's (NASDAQ:QTRX) CEO Compensation Is Well Earned

We have been pretty impressed with the performance at Quanterix Corporation (NASDAQ:QTRX) recently and CEO E. Hrusovsky deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 24 June 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Quanterix

How Does Total Compensation For E. Hrusovsky Compare With Other Companies In The Industry?

According to our data, Quanterix Corporation has a market capitalization of US$2.3b, and paid its CEO total annual compensation worth US$3.5m over the year to December 2020. That's a slight decrease of 3.0% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$554k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$3.5m. So it looks like Quanterix compensates E. Hrusovsky in line with the median for the industry. What's more, E. Hrusovsky holds US$54m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Quanterix pays out 16% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Quanterix Corporation's Growth Numbers

Quanterix Corporation's earnings per share (EPS) grew 30% per year over the last three years. It achieved revenue growth of 63% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Quanterix Corporation Been A Good Investment?

We think that the total shareholder return of 309%, over three years, would leave most Quanterix Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

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 4 warning signs for Quanterix that investors should think about before committing capital to this stock.

Switching gears from Quanterix, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. 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.

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