We Think The Compensation For Intra-Cellular Therapies, Inc.'s (NASDAQ:ITCI) CEO Looks About Right

Performance at Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) has been reasonably good and CEO Sharon Mates has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 21 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Intra-Cellular Therapies

How Does Total Compensation For Sharon Mates Compare With Other Companies In The Industry?

According to our data, Intra-Cellular Therapies, Inc. has a market capitalization of US$3.5b, and paid its CEO total annual compensation worth US$5.5m over the year to December 2020. That's a notable increase of 16% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$767k.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$7.3m. This suggests that Intra-Cellular Therapies remunerates its CEO largely in line with the industry average. Moreover, Sharon Mates also holds US$48m worth of Intra-Cellular Therapies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$767k	US$745k	14%
Other	US$4.7m	US$4.0m	86%
Total Compensation	US$5.5m	US$4.7m	100%

Talking in terms of the industry, salary represented approximately 28% of total compensation out of all the companies we analyzed, while other remuneration made up 72% of the pie. In Intra-Cellular Therapies' case, non-salary compensation represents a greater slice of total remuneration, in comparison 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 Intra-Cellular Therapies, Inc.'s Growth Numbers

Intra-Cellular Therapies, Inc. has reduced its earnings per share by 9.8% a year over the last three years. Its revenue is up 3,187% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Intra-Cellular Therapies, Inc. Been A Good Investment?

We think that the total shareholder return of 111%, over three years, would leave most Intra-Cellular Therapies, 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.

In Summary...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Intra-Cellular Therapies that investors should look into moving forward.

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

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