U.S. Markets closed

Does Pieris Pharmaceuticals, Inc.'s (NASDAQ:PIRS) CEO Pay Matter?

Simply Wall St

Steve Yoder became the CEO of Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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 Pieris Pharmaceuticals

How Does Steve Yoder's Compensation Compare With Similar Sized Companies?

According to our data, Pieris Pharmaceuticals, Inc. has a market capitalization of US$208m, and paid its CEO total annual compensation worth US$2.6m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$500k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.

It would therefore appear that Pieris Pharmaceuticals, Inc. pays Steve Yoder more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Pieris Pharmaceuticals has changed from year to year.

NasdaqCM:PIRS CEO Compensation, November 19th 2019

Is Pieris Pharmaceuticals, Inc. Growing?

Pieris Pharmaceuticals, Inc. saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. It saw its revenue drop 20% over the last year.

In the last three years the company has failed to grow earnings per share. And the impression is worse when you consider revenue is down year-on-year. 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 Pieris Pharmaceuticals, Inc. Been A Good Investment?

Boasting a total shareholder return of 153% over three years, Pieris Pharmaceuticals, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We examined the amount Pieris Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years. But clearly there are some positives, because investors have done well over the same time frame. So on this analysis we'd stop short of criticizing the level of CEO compensation. Shareholders may want to check for free if Pieris Pharmaceuticals insiders are buying or selling shares.

If you want to buy a stock that is better than Pieris Pharmaceuticals, 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.