U.S. Markets open in 4 hrs 23 mins
  • S&P Futures

    4,121.00
    +0.75 (+0.02%)
     
  • Dow Futures

    33,654.00
    +23.00 (+0.07%)
     
  • Nasdaq Futures

    13,806.75
    -2.00 (-0.01%)
     
  • Russell 2000 Futures

    2,227.80
    -2.80 (-0.13%)
     
  • Crude Oil

    59.80
    +0.10 (+0.17%)
     
  • Gold

    1,728.00
    -4.70 (-0.27%)
     
  • Silver

    25.00
    +0.13 (+0.53%)
     
  • EUR/USD

    1.1899
    -0.0018 (-0.1547%)
     
  • 10-Yr Bond

    1.6750
    0.0000 (0.00%)
     
  • Vix

    16.87
    +0.18 (+1.08%)
     
  • GBP/USD

    1.3753
    +0.0011 (+0.0825%)
     
  • USD/JPY

    109.3350
    -0.0410 (-0.0375%)
     
  • BTC-USD

    62,653.74
    +1,858.41 (+3.06%)
     
  • CMC Crypto 200

    1,326.71
    +32.12 (+2.48%)
     
  • FTSE 100

    6,887.50
    -1.62 (-0.02%)
     
  • Nikkei 225

    29,751.61
    +212.88 (+0.72%)
     

How Is Neurocrine Biosciences' (NASDAQ:NBIX) CEO Paid Relative To Peers?

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

This article will reflect on the compensation paid to Kevin Gorman who has served as CEO of Neurocrine Biosciences, Inc. (NASDAQ:NBIX) since 2008. This analysis will also assess whether Neurocrine Biosciences pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Neurocrine Biosciences

Comparing Neurocrine Biosciences, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Neurocrine Biosciences, Inc. has a market capitalization of US$11b, and reported total annual CEO compensation of US$9.5m for the year to December 2019. That's a notable increase of 9.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$725k.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$15m. Accordingly, Neurocrine Biosciences pays its CEO under the industry median. Moreover, Kevin Gorman also holds US$54m worth of Neurocrine Biosciences stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$725k

US$675k

8%

Other

US$8.7m

US$8.0m

92%

Total Compensation

US$9.5m

US$8.6m

100%

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. Neurocrine Biosciences pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at Neurocrine Biosciences, Inc.'s Growth Numbers

Over the past three years, Neurocrine Biosciences, Inc. has seen its earnings per share (EPS) grow by 118% per year. Its revenue is up 71% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Neurocrine Biosciences, Inc. Been A Good Investment?

We think that the total shareholder return of 129%, over three years, would leave most Neurocrine Biosciences, Inc. shareholders smiling. 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.

To Conclude...

As we noted earlier, Neurocrine Biosciences pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Considering robust earnings growth, we believe Kevin to be modestly paid. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Neurocrine Biosciences that investors should be aware of in a dynamic business environment.

Switching gears from Neurocrine Biosciences, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.