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Is Corcept Therapeutics Incorporated's (NASDAQ:CORT) CEO Overpaid Relative To Its Peers?

Simply Wall St

Joseph Belanoff has been the CEO of Corcept Therapeutics Incorporated (NASDAQ:CORT) since 1999. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

See our latest analysis for Corcept Therapeutics

How Does Joseph Belanoff's Compensation Compare With Similar Sized Companies?

Our data indicates that Corcept Therapeutics Incorporated is worth US$1.4b, and total annual CEO compensation is US$6.3m. (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$680k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.

Thus we can conclude that Joseph Belanoff receives more in total compensation than the median of a group of companies in the same market, and of similar size to Corcept Therapeutics Incorporated. However, this doesn't necessarily mean the pay is too high. 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 Corcept Therapeutics has changed over time.

NasdaqCM:CORT CEO Compensation, August 27th 2019

Is Corcept Therapeutics Incorporated Growing?

Over the last three years Corcept Therapeutics Incorporated has grown its earnings per share (EPS) by an average of 59% per year (using a line of best fit). Its revenue is up 24% 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. Shareholders might be interested in this free visualization of analyst forecasts.

Has Corcept Therapeutics Incorporated Been A Good Investment?

Boasting a total shareholder return of 132% over three years, Corcept Therapeutics Incorporated 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 the total CEO remuneration paid by Corcept Therapeutics Incorporated, and compared it to remuneration at a group of 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. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Corcept Therapeutics (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.