Key Insights

• Amicus Therapeutics will host its Annual General Meeting on 6th of June
• CEO Brad Campbell's total compensation includes salary of US$698.6k
• Total compensation is similar to the industry average
• Over the past three years, Amicus Therapeutics' EPS grew by 22% and over the past three years, the total shareholder return was 4.2%

CEO Brad Campbell has done a decent job of delivering relatively good performance at Amicus Therapeutics, Inc. (NASDAQ:FOLD) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 6th of June. Here is our take on why we think the CEO compensation looks appropriate.

How Does Total Compensation For Brad Campbell Compare With Other Companies In The Industry?

Our data indicates that Amicus Therapeutics, Inc. has a market capitalization of US$2.9b, and total annual CEO compensation was reported as US$8.2m for the year to December 2023. Notably, that's a decrease of 8.8% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$699k.

In comparison with other companies in the American Biotechs industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$8.4m. From this we gather that Brad Campbell is paid around the median for CEOs in the industry. Moreover, Brad Campbell also holds US$8.8m worth of Amicus Therapeutics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

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. It's interesting to note that Amicus Therapeutics allocates a smaller portion of compensation to salary 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 Amicus Therapeutics, Inc.'s Growth Numbers

Amicus Therapeutics, Inc.'s earnings per share (EPS) grew 22% per year over the last three years. In the last year, its revenue is up 26%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Amicus Therapeutics, Inc. Been A Good Investment?

With a total shareholder return of 4.2% over three years, Amicus Therapeutics, Inc. has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

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. We did our research and spotted 1 warning sign for Amicus Therapeutics that investors should look into moving forward.

Important note: Amicus Therapeutics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.