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Shareholders May Not Be So Generous With Antares Pharma, Inc.'s (NASDAQ:ATRS) CEO Compensation And Here's Why

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CEO Bob Apple has done a decent job of delivering relatively good performance at Antares Pharma, Inc. (NASDAQ:ATRS) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 10 June 2021. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Antares Pharma

How Does Total Compensation For Bob Apple Compare With Other Companies In The Industry?

At the time of writing, our data shows that Antares Pharma, Inc. has a market capitalization of US$695m, and reported total annual CEO compensation of US$3.8m for the year to December 2020. That's a fairly small increase of 6.8% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$592k.

On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$2.7m. Accordingly, our analysis reveals that Antares Pharma, Inc. pays Bob Apple north of the industry median. What's more, Bob Apple holds US$6.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

US$592k

US$572k

16%

Other

US$3.2m

US$2.9m

84%

Total Compensation

US$3.8m

US$3.5m

100%

Talking in terms of the industry, salary represented approximately 28% of total compensation out of all the companies we analyzed, while other remuneration made up 72% of the pie. Antares Pharma pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at Antares Pharma, Inc.'s Growth Numbers

Antares Pharma, Inc. has seen its earnings per share (EPS) increase by 140% a year over the past three years. In the last year, its revenue is up 19%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Antares Pharma, Inc. Been A Good Investment?

Boasting a total shareholder return of 53% over three years, Antares Pharma, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Antares Pharma that investors should look into moving forward.

Switching gears from Antares Pharma, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.