Stock Analysis

Shareholders May Be A Little Conservative With uniQure N.V.'s (NASDAQ:QURE) CEO Compensation For Now

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NasdaqGS:QURE
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CEO Matt Kapusta has done a decent job of delivering relatively good performance at uniQure N.V. (NASDAQ:QURE) recently. As shareholders go into the upcoming AGM on 16 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for uniQure

Comparing uniQure N.V.'s CEO Compensation With the industry

At the time of writing, our data shows that uniQure N.V. has a market capitalization of US$1.7b, and reported total annual CEO compensation of US$4.5m for the year to December 2020. That's a notable increase of 9.3% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$585k.

On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$4.7m. This suggests that uniQure remunerates its CEO largely in line with the industry average. Moreover, Matt Kapusta also holds US$6.5m worth of uniQure stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary US$585k US$548k 13%
Other US$3.9m US$3.5m 87%
Total CompensationUS$4.5m US$4.1m100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. uniQure sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NasdaqGS:QURE CEO Compensation June 10th 2021

A Look at uniQure N.V.'s Growth Numbers

uniQure N.V. has reduced its earnings per share by 9.2% a year over the last three years. In the last year, its revenue is up 506%.

The decrease in EPS could be a concern for some investors. 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has uniQure N.V. Been A Good Investment?

uniQure N.V. has generated a total shareholder return of 3.8% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Although the company has performed relatively well, we still think there are some areas that could be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for uniQure (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from uniQure, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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