Joseph Belanoff has been the CEO of Corcept Therapeutics Incorporated (NASDAQ:CORT) since 1999. 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 Joseph Belanoff's Compensation Compare With Similar Sized Companies?
According to our data, Corcept Therapeutics Incorporated has a market capitalization of US$1.6b, and paid its CEO total annual compensation worth US$5.0m over the year to December 2019. That's actually a decrease on the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$708k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$5.0m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 28% of total compensation out of all the companies we analysed, while other remuneration made up 72% of the pie. Readers will want to know that Corcept Therapeutics pays a modest slice of remuneration through salary, as compared to the wider sector.
That means Joseph Belanoff receives fairly typical remuneration for the CEO of a company that size. 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 Corcept Therapeutics has changed from year to year.
Is Corcept Therapeutics Incorporated Growing?
Over the last three years Corcept Therapeutics Incorporated has seen earnings per share (EPS) move in a positive direction by an average of 18% per year (using a line of best fit). In the last year, its revenue is up 30%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has Corcept Therapeutics Incorporated Been A Good Investment?
Corcept Therapeutics Incorporated has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Joseph Belanoff is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. Moving away from CEO compensation for the moment, we've identified 1 warning sign for Corcept Therapeutics that you should be aware of before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.