How Much Did Puma Biotechnology, Inc.'s (NASDAQ:PBYI) CEO Pocket Last Year?

Alan Auerbach became the CEO of Puma Biotechnology, Inc. (NASDAQ:PBYI) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Puma Biotechnology

How Does Alan Auerbach's Compensation Compare With Similar Sized Companies?

Our data indicates that Puma Biotechnology, Inc. is worth US$298m, and total annual CEO compensation was reported as US$6.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$757k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.

As you can see, Alan Auerbach is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Puma Biotechnology, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Puma Biotechnology, below.

Is Puma Biotechnology, Inc. Growing?

On average over the last three years, Puma Biotechnology, Inc. has grown earnings per share (EPS) by 36% each year (using a line of best fit). Its revenue is up 98% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.

Has Puma Biotechnology, Inc. Been A Good Investment?

With a three year total loss of 86%, Puma Biotechnology, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Puma Biotechnology, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Puma Biotechnology.

If you want to buy a stock that is better than Puma Biotechnology, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.