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Carl Spana became the CEO of Palatin Technologies, Inc. (NYSEMKT:PTN) in 2000. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Carl Spana's Compensation Compare With Similar Sized Companies?
Our data indicates that Palatin Technologies, Inc. is worth US$200m, and total annual CEO compensation is US$3.2m. (This is based on the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$491k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.
As you can see, Carl Spana is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Palatin Technologies, Inc. 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 Palatin Technologies has changed from year to year.
Is Palatin Technologies, Inc. Growing?
On average over the last three years, Palatin Technologies, Inc. has grown earnings per share (EPS) by 113% each year (using a line of best fit). Its revenue is down -74% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has Palatin Technologies, Inc. Been A Good Investment?
I think that the total shareholder return of 71%, over three years, would leave most Palatin Technologies, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We examined the amount Palatin Technologies, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Palatin Technologies.
If you want to buy a stock that is better than Palatin Technologies, this free list of high return, low debt companies is a great place to look.
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.