Should You Worry About Amicus Therapeutics, Inc.’s (NASDAQ:FOLD) CEO Pay?
John Crowley has been the CEO of Amicus Therapeutics, Inc. (NASDAQ:FOLD) since 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Amicus Therapeutics
How Does John Crowley’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Amicus Therapeutics, Inc. has a market cap of US$2.0b, and is paying total annual CEO compensation of US$5.6m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$619k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.6m.
As you can see, John Crowley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Amicus Therapeutics, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Amicus Therapeutics has changed over time.
Is Amicus Therapeutics, Inc. Growing?
Amicus Therapeutics, Inc. has reduced its earnings per share by an average of 16% a year, over the last three years. It achieved revenue growth of 193% 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. 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 Amicus Therapeutics, Inc. Been A Good Investment?
Amicus Therapeutics, Inc. has served shareholders reasonably well, with a total return of 15% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We compared total CEO remuneration at Amicus Therapeutics, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. So it’s certainly hard to argue that the CEO is modestly paid, although we don’t see the remuneration as an issue. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Amicus Therapeutics (free visualization of insider trades).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
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 editorial-team@simplywallst.com.
