In 2010 Emil Kakkis was appointed CEO of Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Emil Kakkis's Compensation Compare With Similar Sized Companies?
Our data indicates that Ultragenyx Pharmaceutical Inc. is worth US$3.4b, and total annual CEO compensation is US$4.8m. (This is based on the year to December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at US$680k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.3m.
That means Emil Kakkis 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 a visual representation of the CEO compensation at Ultragenyx Pharmaceutical, below.
Is Ultragenyx Pharmaceutical Inc. Growing?
On average over the last three years, Ultragenyx Pharmaceutical Inc. has grown earnings per share (EPS) by 5.4% each year (using a line of best fit). Its revenue is up 344% over last year.
It's great to see that revenue growth is strong. 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 Ultragenyx Pharmaceutical Inc. Been A Good Investment?
Given the total loss of 16% over three years, many shareholders in Ultragenyx Pharmaceutical Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Emil Kakkis is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So many would argue that the CEO is certainly not underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling Ultragenyx Pharmaceutical shares (free trial).
Important note: Ultragenyx Pharmaceutical 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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