Roger Tung has been the CEO of Concert Pharmaceuticals, Inc. (NASDAQ:CNCE) since 2006, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Roger Tung Compare With Other Companies In The Industry?
Our data indicates that Concert Pharmaceuticals, Inc. has a market capitalization of US$299m, and total annual CEO compensation was reported as US$2.8m for the year to December 2019. We note that's a decrease of 40% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$562k.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.6m. Accordingly, our analysis reveals that Concert Pharmaceuticals, Inc. pays Roger Tung north of the industry median. What's more, Roger Tung holds US$8.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. Concert Pharmaceuticals sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Concert Pharmaceuticals, Inc.'s Growth
Concert Pharmaceuticals, Inc. has reduced its earnings per share by 73% a year over the last three years. It achieved revenue growth of 495% over the last year.
Investors would be a bit wary of companies that have lower earnings But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Concert Pharmaceuticals, Inc. Been A Good Investment?
Given the total shareholder loss of 30% over three years, many shareholders in Concert Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we noted earlier, Concert Pharmaceuticals pays its CEO higher than the norm for similar-sized companies belonging to the same industry. It concerns us that earnings growth for the company is negative, while share price gains did not materialize over the last three years. In contrast, revenue growth for the company has been showing a positive trend. Suffice it to say, we don't think the CEO is underpaid!
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Concert Pharmaceuticals that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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