John Crowley has been the CEO of Amicus Therapeutics, Inc. (NASDAQ:FOLD) since 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This method should give us information to assess how appropriately the company pays the CEO.
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How Does John Crowley’s Compensation Compare With Similar Sized Companies?
Our data indicates that Amicus Therapeutics, Inc. is worth US$2.2b, and total annual CEO compensation is US$5.6m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$619k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.5m.
Thus we can conclude that John Crowley receives more in total compensation than the median of a group of companies in the same market, and of similar size to Amicus Therapeutics, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Amicus Therapeutics has changed over time.
Is Amicus Therapeutics, Inc. Growing?
On average over the last three years, Amicus Therapeutics, Inc. has shrunk earnings per share by 16% each year. It achieved revenue growth of 193% over the last year.
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.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Amicus Therapeutics, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Amicus Therapeutics, Inc. for providing a total return of 94% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by Amicus Therapeutics, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Amicus Therapeutics.
Or you might rather take a peek at this analytical visualization of historic cash flow, 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 email@example.com.