In 2013 Arthur Przybyl was appointed CEO of ANI Pharmaceuticals, Inc. (NASDAQ:ANIP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
How Does Arthur Przybyl's Compensation Compare With Similar Sized Companies?
According to our data, ANI Pharmaceuticals, Inc. has a market capitalization of US$719m, and paid its CEO total annual compensation worth US$4.2m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$727k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.5m.
As you can see, Arthur Przybyl is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ANI Pharmaceuticals, 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 a visual representation of the CEO compensation at ANI Pharmaceuticals, below.
Is ANI Pharmaceuticals, Inc. Growing?
On average over the last three years, ANI Pharmaceuticals, Inc. has grown earnings per share (EPS) by 53% each year (using a line of best fit). Its revenue is up 12% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has ANI Pharmaceuticals, Inc. Been A Good Investment?
With a total shareholder return of 4.8% over three years, ANI Pharmaceuticals, Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount ANI Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling ANI Pharmaceuticals shares (free trial).
Important note: ANI Pharmaceuticals 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.
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.
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