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James Noble became the CEO of Adaptimmune Therapeutics plc (NASDAQ:ADAP) in 2014. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does James Noble’s Compensation Compare With Similar Sized Companies?
Our data indicates that Adaptimmune Therapeutics plc is worth US$509m, and total annual CEO compensation is US$1.7m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$551k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.5m.
That means James Noble receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Adaptimmune Therapeutics has changed from year to year.
Is Adaptimmune Therapeutics plc Growing?
Over the last three years Adaptimmune Therapeutics plc has shrunk its earnings per share by an average of 8.0% per year (measured with a line of best fit). It achieved revenue growth of 48% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. It’s hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Adaptimmune Therapeutics plc Been A Good Investment?
Since shareholders would have lost about 35% over three years, some Adaptimmune Therapeutics plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Remuneration for James Noble is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And we think the shareholder returns – over three years – have been underwhelming. So suffice it to say we don’t think the compensation is modest! Whatever your view on compensation, you might want to check if insiders are buying or selling Adaptimmune Therapeutics shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.