In 2000 Carl Spana was appointed CEO of Palatin Technologies, Inc. (NYSEMKT:PTN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does Carl Spana's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Palatin Technologies, Inc. has a market cap of US$98m, and reported total annual CEO compensation of US$2.3m for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at US$505k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$601k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Palatin Technologies stands. Speaking on an industry level, we can see that nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. Our data reveals that Palatin Technologies allocates salary in line with the wider market.
As you can see, Carl Spana is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Palatin Technologies, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see a visual representation of the CEO compensation at Palatin Technologies, below.
Is Palatin Technologies, Inc. Growing?
On average over the last three years, Palatin Technologies, Inc. has seen earnings per share (EPS) move in a favourable direction by 97% each year (using a line of best fit). Its revenue is up 104% over last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Palatin Technologies, Inc. Been A Good Investment?
Palatin Technologies, Inc. has served shareholders reasonably well, with a total return of 31% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Palatin Technologies, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. On another note, Palatin Technologies has 4 warning signs (and 1 which is potentially serious) we think you should know about.
Important note: Palatin Technologies 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 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.
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