Is Blueprint Medicines Corporation’s (NASDAQ:BPMC) CEO Overpaid Relative To Its Peers?
In 2014 Jeff Albers was appointed CEO of Blueprint Medicines Corporation (NASDAQ:BPMC). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Blueprint Medicines
How Does Jeff Albers’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Blueprint Medicines Corporation has a market cap of US$2.5b, and is paying total annual CEO compensation of US$4.9m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$515k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$4.9m.
So Jeff Albers is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Blueprint Medicines has changed over time.
Is Blueprint Medicines Corporation Growing?
Blueprint Medicines Corporation has reduced its earnings per share by an average of 13% a year, over the last three years. In the last year, its revenue is up 64%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. 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.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Blueprint Medicines Corporation Been A Good Investment?
Most shareholders would probably be pleased with Blueprint Medicines Corporation for providing a total return of 141% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Remuneration for Jeff Albers is close enough to the median pay for a CEO of a similar sized company .
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I’d venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Blueprint Medicines (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 editorial-team@simplywallst.com.
