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Is Opiant Pharmaceuticals, Inc.'s (NASDAQ:OPNT) CEO Pay Justified?

Simply Wall St

Roger Crystal has been the CEO of Opiant Pharmaceuticals, Inc. (NASDAQ:OPNT) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Opiant Pharmaceuticals

How Does Roger Crystal's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Opiant Pharmaceuticals, Inc. has a market cap of US$55m, and reported total annual CEO compensation of US$1.4m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$574k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$521k.

As you can see, Roger Crystal is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Opiant Pharmaceuticals, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Opiant Pharmaceuticals, below.

NasdaqCM:OPNT CEO Compensation, January 24th 2020

Is Opiant Pharmaceuticals, Inc. Growing?

On average over the last three years, Opiant Pharmaceuticals, Inc. has shrunk earnings per share by 98% each year (measured with a line of best fit). In the last year, its revenue is up 12%.

Few shareholders would be pleased to read that earnings per share are lower over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Opiant Pharmaceuticals, Inc. Been A Good Investment?

Boasting a total shareholder return of 60% over three years, Opiant Pharmaceuticals, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at Opiant Pharmaceuticals, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Earnings per share have not grown in three years, and the revenue growth fails to impress us. On the other hand, returns have been good, so the company is doing something right. Considering this, shareholders are probably not too worried about the CEO compensation. Shareholders may want to check for free if Opiant Pharmaceuticals insiders are buying or selling shares.

If you want to buy a stock that is better than Opiant Pharmaceuticals, 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.