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Is Endo International plc's (NASDAQ:ENDP) CEO Pay Fair?

Simply Wall St

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Paul Campanelli became the CEO of Endo International plc (NASDAQ:ENDP) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Endo International

How Does Paul Campanelli's Compensation Compare With Similar Sized Companies?

According to our data, Endo International plc has a market capitalization of US$889m, and pays its CEO total annual compensation worth US$20m. (This figure is for the year to December 2018). Notably, that's an increase of 47% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$913k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.

As you can see, Paul Campanelli is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Endo International plc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Endo International has changed from year to year.

NasdaqGS:ENDP CEO Compensation, June 21st 2019

Is Endo International plc Growing?

Endo International plc has increased its earnings per share (EPS) by an average of 4.6% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -5.3%.

I would prefer it if there was revenue growth, but I'm happy with the EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has Endo International plc Been A Good Investment?

Given the total loss of 75% over three years, many shareholders in Endo International plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared the total CEO remuneration paid by Endo International plc, 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.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. This contrasts with the growth in CEO remuneration, in the last year. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Endo International shares with their own money (free access).

Important note: Endo International 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.

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.