Stuart Peltz became the CEO of PTC Therapeutics, Inc. (NASDAQ:PTCT) in 1998. 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.
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How Does Stuart Peltz’s Compensation Compare With Similar Sized Companies?
Our data indicates that PTC Therapeutics, Inc. is worth US$2.3b, and total annual CEO compensation is US$4.0m. (This figure is for the year to December 2018). That’s a notable increase of 85% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$659k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.0m.
So Stuart Peltz receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Therapeutics has changed over time.
Is PTC Therapeutics, Inc. Growing?
On average over the last three years, PTC Therapeutics, Inc. has grown earnings per share (EPS) by 32% each year (using a line of best fit). It achieved revenue growth of 17% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has PTC Therapeutics, Inc. Been A Good Investment?
Boasting a total shareholder return of 405% over three years, PTC Therapeutics, Inc. has done well by shareholders. 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.
Stuart Peltz is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Therapeutics shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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.