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Jeff Albers has been the CEO of Blueprint Medicines Corporation (NASDAQ:BPMC) since 2014. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Jeff Albers's Compensation Compare With Similar Sized Companies?
Our data indicates that Blueprint Medicines Corporation is worth US$4.1b, and total annual CEO compensation is US$9.7m. (This number is for the twelve months until December 2018). That's a notable increase of 97% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$541k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m.
Thus we can conclude that Jeff Albers receives more in total compensation than the median of a group of companies in the same market, and of similar size to Blueprint Medicines Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Blueprint Medicines has changed from year to year.
Is Blueprint Medicines Corporation Growing?
Blueprint Medicines Corporation has reduced its earnings per share by an average of 33% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 168%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. 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 Blueprint Medicines Corporation Been A Good Investment?
Most shareholders would probably be pleased with Blueprint Medicines Corporation for providing a total return of 351% 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 Blueprint Medicines Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Blueprint Medicines shares (free trial).
If you want to buy a stock that is better than Blueprint Medicines, 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.