Tim Walbert has been the CEO of Horizon Therapeutics Public Limited Company (NASDAQ:HZNP) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Tim Walbert's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Horizon Therapeutics Public Limited Company has a market cap of US$5.2b, and reported total annual CEO compensation of US$17m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.1m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$7.5m.
As you can see, Tim Walbert is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Horizon Therapeutics Public Limited Company is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Horizon Therapeutics has changed from year to year.
Is Horizon Therapeutics Public Limited Company Growing?
Over the last three years Horizon Therapeutics Public Limited Company has grown its earnings per share (EPS) by an average of 86% per year (using a line of best fit). It achieved revenue growth of 7.7% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Horizon Therapeutics Public Limited Company Been A Good Investment?
Most shareholders would probably be pleased with Horizon Therapeutics Public Limited Company for providing a total return of 88% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Horizon Therapeutics Public Limited Company, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Taking a breather from CEO compensation, we've spotted 4 warning signs for Horizon Therapeutics (of which 1 can't be ignored!) you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.