Dinesh Patel became the CEO of Protagonist Therapeutics, Inc. (NASDAQ:PTGX) 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Dinesh Patel's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Protagonist Therapeutics, Inc. has a market cap of US$341m, and is paying total annual CEO compensation of US$3.7m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$520k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.9m.
As you can see, Dinesh Patel is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Protagonist Therapeutics, 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 Protagonist Therapeutics, below.
Is Protagonist Therapeutics, Inc. Growing?
Protagonist Therapeutics, Inc. has increased its earnings per share (EPS) by an average of 133% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -96%.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Protagonist Therapeutics, Inc. Been A Good Investment?
Protagonist Therapeutics, Inc. has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared the total CEO remuneration paid by Protagonist Therapeutics, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Shareholders may want to check for free if Protagonist Therapeutics insiders are buying or selling shares.
Important note: Protagonist Therapeutics 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.
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