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Kevin Gorman became the CEO of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Kevin Gorman's Compensation Compare With Similar Sized Companies?
Our data indicates that Neurocrine Biosciences, Inc. is worth US$7.8b, and total annual CEO compensation is US$8.6m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$675k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.9m.
So Kevin Gorman receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Neurocrine Biosciences has changed from year to year.
Is Neurocrine Biosciences, Inc. Growing?
Over the last three years Neurocrine Biosciences, Inc. has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). Its revenue is up 123% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has Neurocrine Biosciences, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Neurocrine Biosciences, Inc. for providing a total return of 85% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Kevin Gorman is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Neurocrine Biosciences.
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 email@example.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.