Helen Torley has been the CEO of Halozyme Therapeutics, Inc. (NASDAQ:HALO) since 2014. 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.
How Does Helen Torley's Compensation Compare With Similar Sized Companies?
According to our data, Halozyme Therapeutics, Inc. has a market capitalization of US$2.4b, and pays its CEO total annual compensation worth US$5.8m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$725k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
So Helen Torley receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Halozyme Therapeutics has changed from year to year.
Is Halozyme Therapeutics, Inc. Growing?
Over the last three years Halozyme Therapeutics, Inc. has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). Its revenue is down -43% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Halozyme Therapeutics, Inc. Been A Good Investment?
I think that the total shareholder return of 68%, over three years, would leave most Halozyme Therapeutics, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Helen Torley 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. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Halozyme Therapeutics.
If you want to buy a stock that is better than Halozyme Therapeutics, this free list of high return, low debt companies is a great place to look.
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