Tim Walbert has been the CEO of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) since 2008, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Horizon Therapeutics.
How Does Total Compensation For Tim Walbert Compare With Other Companies In The Industry?
Our data indicates that Horizon Therapeutics Public Limited Company has a market capitalization of US$18b, and total annual CEO compensation was reported as US$14m for the year to December 2019. We note that’s a decrease of 17% compared to last year. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at US$1.1m.
On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$17m. From this we gather that Tim Walbert is paid around the median for CEOs in the industry. What’s more, Tim Walbert holds US$59m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 24% of total compensation out of all the companies we analyzed, while other remuneration made up 76% of the pie. Horizon Therapeutics pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Horizon Therapeutics Public Limited Company’s Growth Numbers
Horizon Therapeutics Public Limited Company’s earnings per share (EPS) grew 119% per year over the last three years. Its revenue is up 18% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Horizon Therapeutics Public Limited Company Been A Good Investment?
Most shareholders would probably be pleased with Horizon Therapeutics Public Limited Company for providing a total return of 536% over three years. 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.
As previously discussed, Tim is compensated close to the median for companies of its size, and which belong to the same industry. Investors would surely be happy to see that returns have been great, and that EPS is up. Indeed, many might consider that Tim is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
CEO compensation is an important area to keep your eyes on, but we’ve also need to pay attention to other attributes of the company. We identified 4 warning signs for Horizon Therapeutics (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
Important note: Horizon Therapeutics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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