Alessandro Della Chà became the CEO of Cosmo Pharmaceuticals N.V. (
VTX:COPN
) in 2014. This best prop for pontoon 90 hpanalysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Check out our latest analysis for Cosmo Pharmaceuticals
How Does Alessandro Della Chà’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Cosmo Pharmaceuticals N.V. has a market cap of CHF1.3b, and is paying total annual CEO compensation of €1.7m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at €30k. When we examined a selection of companies with market caps ranging from €874m to €2.8b, we found the median CEO compensation was €1.5m.
That means Alessandro Della Chà receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Cosmo Pharmaceuticals has changed over time.
SWX:COPN CEO Compensation January 1st 19
Is Cosmo Pharmaceuticals N.V. Growing?
Over the last three years Cosmo Pharmaceuticals N.V. has shrunk its earnings per share by an average of 126% per year. In the last year, its revenue is up 5.3%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Shareholders might be interested in
this
free
visualization of analyst forecasts.
.
Has Cosmo Pharmaceuticals N.V. Been A Good Investment?
With a three year total loss of 44%, Cosmo Pharmaceuticals N.V. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Alessandro Della Chà is paid around the same as most CEOs of similar size companies.
The company isn’t growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don’t think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like
this free visualization of insider trading at Cosmo Pharmaceuticals.
Story continues
Of course,
the past can be informative
so you might be interested in considering
this
analytical visualization
showing the company history of earnings 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
.
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