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Is NovoCure Limited's (NASDAQ:NVCR) CEO Paid Enough Relative To Peers?

Simply Wall St

In 2002 Asaf Danziger was appointed CEO of NovoCure Limited (NASDAQ:NVCR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for NovoCure

How Does Asaf Danziger's Compensation Compare With Similar Sized Companies?

According to our data, NovoCure Limited has a market capitalization of US$8.7b, and paid its CEO total annual compensation worth US$4.6m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$693k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.4m.

That means Asaf Danziger receives fairly typical remuneration for the CEO of a company that size. 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 NovoCure has changed over time.

NasdaqGS:NVCR CEO Compensation, February 11th 2020

Is NovoCure Limited Growing?

Over the last three years NovoCure Limited has grown its earnings per share (EPS) by an average of 47% per year (using a line of best fit). Its revenue is up 39% over last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.

Has NovoCure Limited Been A Good Investment?

Boasting a total shareholder return of 1078% over three years, NovoCure Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Asaf Danziger is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if NovoCure insiders are buying or selling shares.

If you want to buy a stock that is better than NovoCure, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.