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Bob Apple became the CEO of Antares Pharma, Inc. (NASDAQ:ATRS) in 2016, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Antares Pharma pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing Antares Pharma, Inc.'s CEO Compensation With the industry
According to our data, Antares Pharma, Inc. has a market capitalization of US$478m, and paid its CEO total annual compensation worth US$3.5m over the year to December 2019. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$572k.
On examining similar-sized companies in the industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$2.2m. Hence, we can conclude that Bob Apple is remunerated higher than the industry median. Furthermore, Bob Apple directly owns US$6.6m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 21% of total compensation represents salary and 79% is other remuneration. Antares Pharma pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Antares Pharma, Inc.'s Growth Numbers
Antares Pharma, Inc.'s earnings per share (EPS) grew 70% per year over the last three years. Its revenue is up 80% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Antares Pharma, Inc. Been A Good Investment?
Since shareholders would have lost about 1.4% over three years, some Antares Pharma, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, Antares Pharma, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the earnings per share growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Antares Pharma that you should be aware of before investing.
Important note: Antares Pharma 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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