- Oops!Something went wrong.Please try again later.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Roger Tung has been the CEO of Concert Pharmaceuticals, Inc. (NASDAQ:CNCE) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does Roger Tung's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Concert Pharmaceuticals, Inc. has a market cap of US$266m, and is paying total annual CEO compensation of US$3.4m. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$517k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.0m.
It would therefore appear that Concert Pharmaceuticals, Inc. pays Roger Tung more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Concert Pharmaceuticals, below.
Is Concert Pharmaceuticals, Inc. Growing?
Concert Pharmaceuticals, Inc. has increased its earnings per share (EPS) by an average of 9.7% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -90%.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Concert Pharmaceuticals, Inc. Been A Good Investment?
With a total shareholder return of 4.7% over three years, Concert Pharmaceuticals, Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at Concert 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.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. Shareholders may want to check for free if Concert Pharmaceuticals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.