How Much Did Theravance Biopharma, Inc.'s (NASDAQ:TBPH) CEO Pocket Last Year?
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Rick Winningham has been the CEO of Theravance Biopharma, Inc. (NASDAQ:TBPH) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Theravance Biopharma
How Does Rick Winningham's Compensation Compare With Similar Sized Companies?
According to our data, Theravance Biopharma, Inc. has a market capitalization of US$877m, and pays its CEO total annual compensation worth US$2.5m. (This figure is for the year to December 2018). That's a notable increase of 8.9% on last year. While we always look at total compensation first, we note that the salary component is less, at US$957k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
So Rick Winningham receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Theravance Biopharma has changed over time.
Is Theravance Biopharma, Inc. Growing?
On average over the last three years, Theravance Biopharma, Inc. has grown earnings per share (EPS) by 1.3% each year (using a line of best fit). In the last year, its revenue is up 178%.
I like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. I wouldn't say this is necessarily top notch growth, but it is certainly promising. You might want to check this free visual report on analyst forecasts for future earnings.
Has Theravance Biopharma, Inc. Been A Good Investment?
Given the total loss of 31% over three years, many shareholders in Theravance Biopharma, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Rick Winningham is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. This doesn't look great when you consider CEO remuneration is up on last year. So it would take a bold person to suggest the pay is too modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Theravance Biopharma.
Important note: Theravance Biopharma 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.
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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.
