Bruce Cozadd has been the CEO of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Bruce Cozadd’s Compensation Compare With Similar Sized Companies?
Our data indicates that Jazz Pharmaceuticals plc is worth US$8.7b, and total annual CEO compensation is US$10m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$950k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO compensation of that group was US$6.6m.
It would therefore appear that Jazz Pharmaceuticals plc pays Bruce Cozadd 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Jazz Pharmaceuticals has changed over time.
Is Jazz Pharmaceuticals plc Growing?
On average over the last three years, Jazz Pharmaceuticals plc has grown earnings per share (EPS) by 15% each year. It achieved revenue growth of 17% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Jazz Pharmaceuticals plc Been A Good Investment?
With a total shareholder return of 4.5% over three years, Jazz Pharmaceuticals plc has done okay by shareholders. 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 Jazz Pharmaceuticals plc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. So you may want to check if insiders are buying Jazz Pharmaceuticals shares with their own money (free access).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.