In 2011 John Crowley was appointed CEO of Amicus Therapeutics, Inc. (NASDAQ:FOLD). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.
How Does John Crowley's Compensation Compare With Similar Sized Companies?
According to our data, Amicus Therapeutics, Inc. has a market capitalization of US$2.8b, and paid its CEO total annual compensation worth US$7.4m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$638k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
As you can see, John Crowley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Amicus Therapeutics, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Amicus Therapeutics has changed over time.
Is Amicus Therapeutics, Inc. Growing?
Amicus Therapeutics, Inc. has reduced its earnings per share by an average of 9.6% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 118%.
Investors should note that, over three years, earnings per share are down. 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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Amicus Therapeutics, Inc. Been A Good Investment?
Boasting a total shareholder return of 75% over three years, Amicus Therapeutics, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at Amicus Therapeutics, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Amicus Therapeutics insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.