Alessandro Della Chà became the CEO of Cosmo Pharmaceuticals N.V. (VTX:COPN) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Cosmo Pharmaceuticals

How Does Alessandro Della Chà’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Cosmo Pharmaceuticals N.V. has a market cap of CHF1.3b, and is paying total annual CEO compensation of €1.7m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at €30k. When we examined a selection of companies with market caps ranging from €874m to €2.8b, we found the median CEO compensation was €1.5m.

That means Alessandro Della Chà receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Cosmo Pharmaceuticals has changed over time.

Is Cosmo Pharmaceuticals N.V. Growing?

Over the last three years Cosmo Pharmaceuticals N.V. has shrunk its earnings per share by an average of 126% per year. In the last year, its revenue is up 5.3%.

Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Cosmo Pharmaceuticals N.V. Been A Good Investment?

With a three year total loss of 44%, Cosmo Pharmaceuticals N.V. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Alessandro Della Chà is paid around the same as most CEOs of similar size companies.

The company isn’t growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don’t think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cosmo Pharmaceuticals.