Does Pharming Group N.V.'s (AMS:PHARM) CEO Salary Reflect Performance?

In 2008 Simon de Vries was appointed CEO of Pharming Group N.V. (AMS:PHARM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Pharming Group

How Does Simon de Vries's Compensation Compare With Similar Sized Companies?

Our data indicates that Pharming Group N.V. is worth €870m, and total annual CEO compensation was reported as €1.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at €490k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from €363m to €1.5b, we found the median CEO total compensation was €1.1m.

That means Simon de Vries receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. It could be important to check this free visual depiction of what analysts expect for the future.

You can see a visual representation of the CEO compensation at Pharming Group, below.

Is Pharming Group N.V. Growing?

On average over the last three years, Pharming Group N.V. has grown earnings per share (EPS) by 64% each year (using a line of best fit). It achieved revenue growth of 22% over the last year.

This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

Has Pharming Group N.V. Been A Good Investment?

Boasting a total shareholder return of 564% over three years, Pharming Group N.V. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Remuneration for Simon de Vries is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Pharming Group.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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