Kevin Sayer has been the CEO of DexCom Inc (NASDAQ:DXCM) since 2015. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for DexCom

How Does Kevin Sayer’s Compensation Compare With Similar Sized Companies?

According to our data, DexCom Inc has a market capitalization of US$12b, and pays its CEO total annual compensation worth US$7.9m. Notably, that’s an increase of 13% over the year before. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m.

So Kevin Sayer receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at DexCom has changed over time.

Is DexCom Inc Growing?

On average over the last three years, DexCom Inc has grown earnings per share (EPS) by 46% each year. It achieved revenue growth of 37% 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.

It could be important to check this free visual depiction of what analysts expect for the future.

Has DexCom Inc Been A Good Investment?

Most shareholders would probably be pleased with DexCom Inc for providing a total return of 60% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Kevin Sayer is close enough to the median pay for a CEO of a large company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance!

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

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.