Jon Stonehouse became the CEO of BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) in 2007, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for BioCryst Pharmaceuticals.
See our latest analysis for BioCryst Pharmaceuticals
How Does Total Compensation For Jon Stonehouse Compare With Other Companies In The Industry?
Our data indicates that BioCryst Pharmaceuticals, Inc. has a market capitalization of US$678m, and total annual CEO compensation was reported as US$2.3m for the year to December 2019. That's a notable decrease of 45% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$550k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.8m. So it looks like BioCryst Pharmaceuticals compensates Jon Stonehouse in line with the median for the industry. Moreover, Jon Stonehouse also holds US$2.9m worth of BioCryst Pharmaceuticals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$550k | US$550k | 24% |
Other | US$1.7m | US$3.6m | 76% |
Total Compensation | US$2.3m | US$4.2m | 100% |
Talking in terms of the industry, salary represented approximately 24% of total compensation out of all the companies we analyzed, while other remuneration made up 76% of the pie. Although there is a difference in how total compensation is set, BioCryst Pharmaceuticals more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at BioCryst Pharmaceuticals, Inc.'s Growth Numbers
BioCryst Pharmaceuticals, Inc. has reduced its earnings per share by 12% a year over the last three years. It achieved revenue growth of 327% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has BioCryst Pharmaceuticals, Inc. Been A Good Investment?
Since shareholders would have lost about 18% over three years, some BioCryst Pharmaceuticals, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Jon is compensated close to the median for companies of its size, and which belong to the same industry. But revenue growth seems to be inching northward, a heartening sign for the company. On the other hand, shareholder returns for Jon are negative over the same period. EPS growth is also negative, adding insult to injury. Overall, we wouldn't say CEO is highly paid, but shareholders might not go for a raise before business metrics start to improve precipitously.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for BioCryst Pharmaceuticals (1 is significant!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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