U.S. Markets closed

Is Amicus Therapeutics, Inc.'s (NASDAQ:FOLD) CEO Overpaid Relative To Its Peers?

Simply Wall St

John Crowley became the CEO of Amicus Therapeutics, Inc. (NASDAQ:FOLD) in 2011. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Amicus Therapeutics

How Does John Crowley's Compensation Compare With Similar Sized Companies?

According to our data, Amicus Therapeutics, Inc. has a market capitalization of US$2.6b, and pays its CEO total annual compensation worth US$7.4m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$638k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.

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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Amicus Therapeutics has changed over time.

NasdaqGM:FOLD CEO Compensation, August 19th 2019

Is Amicus Therapeutics, Inc. Growing?

On average over the last three years, Amicus Therapeutics, Inc. has shrunk earnings per share by 14% each year (measured with a line of best fit). In the last year, its revenue is up 107%.

The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 44% over three years, Amicus Therapeutics, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at Amicus Therapeutics, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Amicus Therapeutics shares with their own money (free access).

Important note: Amicus Therapeutics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.