Rick Winningham has been the CEO of Theravance Biopharma, Inc. (NASDAQ:TBPH) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Rick Winningham’s Compensation Compare With Similar Sized Companies?
According to our data, Theravance Biopharma, Inc. has a market capitalization of US$1.5b, and pays its CEO total annual compensation worth US$2.3m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$933k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$3.6m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Theravance Biopharma has changed over time.
Is Theravance Biopharma, Inc. Growing?
Theravance Biopharma, Inc. has increased its earnings per share (EPS) by an average of 2.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 197%.
It’s great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Theravance Biopharma, Inc. Been A Good Investment?
Boasting a total shareholder return of 99% over three years, Theravance Biopharma, Inc. has done well by shareholders. 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.
It appears that Theravance Biopharma, Inc. remunerates its CEO below most similar sized companies.
Rick Winningham is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Theravance Biopharma (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.