Stuart Peltz has been the CEO of PTC Therapeutics, Inc. (NASDAQ:PTCT) since 1998. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
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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$1.8b, and total annual CEO compensation is US$2.2m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$637k. 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$3.6m.
Most shareholders would consider it a positive that Stuart Peltz takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Therapeutics, below.
Is PTC Therapeutics, Inc. Growing?
PTC Therapeutics, Inc. has increased its earnings per share (EPS) by an average of 39% a year, over the last three years (using a line of best fit). Its revenue is up 81% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has PTC Therapeutics, Inc. Been A Good Investment?
Most shareholders would probably be pleased with PTC Therapeutics, Inc. for providing a total return of 42% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like PTC Therapeutics, Inc. pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Stuart Peltz deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Therapeutics shares (free trial).
Or you might prefer examine intently this intuitive graph showing past 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 firstname.lastname@example.org.