Yahoo Finance Should You Be Pleased About The CEO Pay At Pharming Group N.V.'s (AMS:PHARM)
Simon de Vries has been the CEO of Pharming Group N.V. (AMS:PHARM) since 2008. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Pharming Group
How Does Simon de Vries's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Pharming Group N.V. has a market cap of €589m, and reported total annual CEO compensation of €1.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at €490k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from €361m to €1.4b, we found the median CEO total compensation was €1.2m.
That means Simon de Vries receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Pharming Group has changed over time.
Is Pharming Group N.V. Growing?
Pharming Group N.V. has increased its earnings per share (EPS) by an average of 81% a year, over the last three years (using a line of best fit). Its revenue is up 25% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Pharming Group N.V. Been A Good Investment?
I think that the total shareholder return of 208%, over three years, would leave most Pharming Group N.V. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Simon de Vries is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! On another note, we've spotted 3 warning signs for Pharming Group that investors should look into moving forward.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
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