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Gregory Went has been the CEO of Adamas Pharmaceuticals, Inc. (NASDAQ:ADMS) since 2000. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Gregory Went’s Compensation Compare With Similar Sized Companies?
According to our data, Adamas Pharmaceuticals, Inc. has a market capitalization of US$166m, and pays its CEO total annual compensation worth US$3.4m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued 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$1.2m.
Thus we can conclude that Gregory Went receives more in total compensation than the median of a group of companies in the same market, and of similar size to Adamas Pharmaceuticals, Inc.. However, this doesn’t necessarily mean the pay 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 Adamas Pharmaceuticals has changed over time.
Is Adamas Pharmaceuticals, Inc. Growing?
On average over the last three years, Adamas Pharmaceuticals, Inc. has shrunk earnings per share by 25% each year (measured with a line of best fit). In the last year, its revenue is up 1281%.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Has Adamas Pharmaceuticals, Inc. Been A Good Investment?
Since shareholders would have lost about 61% over three years, some Adamas Pharmaceuticals, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Adamas Pharmaceuticals, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Adamas Pharmaceuticals shares with their own money (free access).
If you want to buy a stock that is better than Adamas Pharmaceuticals, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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.