Joseph Belanoff became the CEO of Corcept Therapeutics Incorporated (NASDAQ:CORT) in 1999, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Joseph Belanoff Compare With Other Companies In The Industry?
At the time of writing, our data shows that Corcept Therapeutics Incorporated has a market capitalization of US$3.1b, and reported total annual CEO compensation of US$5.0m for the year to December 2019. We note that's a decrease of 21% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$708k.
On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$5.5m. This suggests that Corcept Therapeutics remunerates its CEO largely in line with the industry average. What's more, Joseph Belanoff holds US$66m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Speaking on an industry level, nearly 25% of total compensation represents salary, while the remainder of 75% is other remuneration. It's interesting to note that Corcept Therapeutics allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Corcept Therapeutics Incorporated's Growth
Over the past three years, Corcept Therapeutics Incorporated has seen its earnings per share (EPS) grow by 45% per year. Its revenue is up 25% over the 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Corcept Therapeutics Incorporated Been A Good Investment?
We think that the total shareholder return of 47%, over three years, would leave most Corcept Therapeutics Incorporated shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we touched on above, Corcept Therapeutics Incorporated is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Corcept Therapeutics that investors should think about before committing capital to this stock.
Switching gears from Corcept Therapeutics, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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