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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. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Crowley’s Compensation Compare With Similar Sized Companies?
Our data indicates that Amicus Therapeutics, Inc. is worth US$3.2b, and total annual CEO compensation is US$7.4m. (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$638k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m.
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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Amicus Therapeutics has changed from year to year.
Is Amicus Therapeutics, Inc. Growing?
Over the last three years Amicus Therapeutics, Inc. has shrunk its earnings per share by an average of 14% per year (measured with a line of best fit). Its revenue is up 120% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
Has Amicus Therapeutics, Inc. Been A Good Investment?
I think that the total shareholder return of 123%, over three years, would leave most Amicus Therapeutics, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We examined the amount Amicus Therapeutics, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Amicus Therapeutics (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.