Roger Tung has been the CEO of Concert Pharmaceuticals, Inc. (NASDAQ:CNCE) since 2006. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Roger Tung's Compensation Compare With Similar Sized Companies?
According to our data, Concert Pharmaceuticals, Inc. has a market capitalization of US$160m, and paid its CEO total annual compensation worth US$4.6m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$536k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.1m.
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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Concert Pharmaceuticals has changed over time.
Is Concert Pharmaceuticals, Inc. Growing?
Over the last three years Concert Pharmaceuticals, Inc. has shrunk its earnings per share by an average of 2.0% per year (measured with a line of best fit). It saw its revenue drop 90% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Concert Pharmaceuticals, Inc. Been A Good Investment?
Given the total loss of 30% over three years, many shareholders in Concert Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Concert Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! So you may want to check if insiders are buying Concert Pharmaceuticals shares with their own money (free access).
If you want to buy a stock that is better than Concert Pharmaceuticals, this free list of high return, low debt companies is a great place to look.
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