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Armando Anido has been the CEO of Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Zynerba Pharmaceuticals, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Zynerba Pharmaceuticals, Inc. has a market capitalization of US$101m, and reported total annual CEO compensation of US$1.4m for the year to December 2019. We note that's a decrease of 32% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$568k.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$833k. Hence, we can conclude that Armando Anido is remunerated higher than the industry median. Furthermore, Armando Anido directly owns US$1.3m worth of shares in the company.
On an industry level, roughly 25% of total compensation represents salary and 75% is other remuneration. According to our research, Zynerba Pharmaceuticals has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Zynerba Pharmaceuticals, Inc.'s Growth
Over the past three years, Zynerba Pharmaceuticals, Inc. has seen its earnings per share (EPS) grow by 19% per year. It achieved revenue growth of 25% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Zynerba Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 73% for the shareholders, Zynerba Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, Zynerba Pharmaceuticals pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Armando is underpaid, in fact compensation is definitely on the higher side.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Zynerba Pharmaceuticals you should be aware of, and 1 of them doesn't sit too well with us.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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