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Mitch Gold has been the CEO of Alpine Immune Sciences, Inc. (NASDAQ:ALPN) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Alpine Immune Sciences pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Alpine Immune Sciences, Inc.'s CEO Compensation With the industry
According to our data, Alpine Immune Sciences, Inc. has a market capitalization of US$186m, and paid its CEO total annual compensation worth US$1.6m over the year to December 2019. We note that's an increase of 49% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$485k.
For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$1.6m. From this we gather that Mitch Gold is paid around the median for CEOs in the industry. Furthermore, Mitch Gold directly owns US$210k worth of shares in the company.
Talking in terms of the industry, salary represented approximately 24% of total compensation out of all the companies we analyzed, while other remuneration made up 76% of the pie. Alpine Immune Sciences pays out 31% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Alpine Immune Sciences, Inc.'s Growth Numbers
Alpine Immune Sciences, Inc.'s earnings per share (EPS) grew 32% per year over the last three years. Its revenue is up 418% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Alpine Immune Sciences, Inc. Been A Good Investment?
Given the total shareholder loss of 24% over three years, many shareholders in Alpine Immune Sciences, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, Alpine Immune Sciences pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 1 which is potentially serious) in Alpine Immune Sciences we think you should know about.
Important note: Alpine Immune Sciences 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.
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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