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In 2016 Paul Campanelli was appointed CEO of Endo International plc (NASDAQ:ENDP). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Paul Campanelli's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Endo International plc has a market cap of US$889m, and is paying total annual CEO compensation of US$20m. (This number is for the twelve months until December 2018). Notably, that's an increase of 47% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$913k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
It would therefore appear that Endo International plc pays Paul Campanelli more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Endo International has changed over time.
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 argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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.
We compared total CEO remuneration at Endo International plc 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.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. This doesn't look great when you consider CEO remuneration is up on last year. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Endo International (free visualization of insider trades).
If you want to buy a stock that is better than Endo International, this free list of high return, low debt companies is a great place to look.
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.