Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2013 Arthur Przybyl was appointed CEO of ANI Pharmaceuticals, Inc. (NASDAQ:ANIP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Arthur Przybyl's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that ANI Pharmaceuticals, Inc. has a market cap of US$996m, and is paying total annual CEO compensation of US$4.2m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$727k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.7m.
Thus we can conclude that Arthur Przybyl receives more in total compensation than the median of a group of companies in the same market, and of similar size to ANI Pharmaceuticals, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at ANI Pharmaceuticals, below.
Is ANI Pharmaceuticals, Inc. Growing?
ANI Pharmaceuticals, Inc. has reduced its earnings per share by an average of 8.6% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 11% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has ANI Pharmaceuticals, Inc. Been A Good Investment?
Most shareholders would probably be pleased with ANI Pharmaceuticals, Inc. for providing a total return of 48% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by ANI Pharmaceuticals, 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.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
However, we can't argue with the strong returns to shareholders, over the same time period. So on this analysis we'd stop short of criticizing the level of CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ANI Pharmaceuticals.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 firstname.lastname@example.org. 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.