Yahoo Finance Collegium Pharmaceutical, Inc.'s (NASDAQ:COLL) CEO Looks Like They Deserve Their Pay Packet
Key Insights
Collegium Pharmaceutical to hold its Annual General Meeting on 16th of May
Salary of US$817.0k is part of CEO Joe Ciaffoni's total remuneration
Total compensation is similar to the industry average
Collegium Pharmaceutical's EPS grew by 24% over the past three years while total shareholder return over the past three years was 74%
The performance at Collegium Pharmaceutical, Inc. (NASDAQ:COLL) has been quite strong recently and CEO Joe Ciaffoni has played a role in it. Coming up to the next AGM on 16th of May, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
View our latest analysis for Collegium Pharmaceutical
Comparing Collegium Pharmaceutical, Inc.'s CEO Compensation With The Industry
Our data indicates that Collegium Pharmaceutical, Inc. has a market capitalization of US$1.2b, and total annual CEO compensation was reported as US$9.1m for the year to December 2023. That's a notable increase of 32% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$817k.
On comparing similar companies from the American Pharmaceuticals industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$7.7m. From this we gather that Joe Ciaffoni is paid around the median for CEOs in the industry. Moreover, Joe Ciaffoni also holds US$5.6m worth of Collegium Pharmaceutical stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$817k | US$752k | 9% |
Other | US$8.3m | US$6.2m | 91% |
Total Compensation | US$9.1m | US$6.9m | 100% |
Talking in terms of the industry, salary represented approximately 28% of total compensation out of all the companies we analyzed, while other remuneration made up 72% of the pie. In Collegium Pharmaceutical's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Collegium Pharmaceutical, Inc.'s Growth Numbers
Over the past three years, Collegium Pharmaceutical, Inc. has seen its earnings per share (EPS) grow by 24% per year. It achieved revenue growth of 22% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Collegium Pharmaceutical, Inc. Been A Good Investment?
We think that the total shareholder return of 74%, over three years, would leave most Collegium Pharmaceutical, Inc. shareholders smiling. 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.
In Summary...
Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Collegium Pharmaceutical (1 is significant!) that you should be aware of before investing here.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
