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In 2009 Bruce Cozadd was appointed CEO of Jazz Pharmaceuticals plc (NASDAQ:JAZZ). 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Bruce Cozadd's Compensation Compare With Similar Sized Companies?
Our data indicates that Jazz Pharmaceuticals plc is worth US$7.4b, and total annual CEO compensation is US$11m. (This number is for the twelve months until December 2018). Notably, that's an increase of 11% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$979k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.9m.
It would therefore appear that Jazz Pharmaceuticals plc pays Bruce Cozadd 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Jazz Pharmaceuticals, below.
Is Jazz Pharmaceuticals plc Growing?
Over the last three years Jazz Pharmaceuticals plc has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 16%.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Jazz Pharmaceuticals plc Been A Good Investment?
With a three year total loss of 16%, Jazz Pharmaceuticals plc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Jazz Pharmaceuticals plc, 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.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. This contrasts with the growth in CEO remuneration, in the last year. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Jazz Pharmaceuticals shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.