In 2007, Dave Stack was appointed CEO of Pacira BioSciences, Inc. (NASDAQ:PCRX). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Dave Stack's Compensation Compare With Similar Sized Companies?
Our data indicates that Pacira BioSciences, Inc. is worth US$1.6b, and total annual CEO compensation was reported as US$5.8m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$808k. 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$1.0b to US$3.2b, we found the median CEO total compensation was US$4.8m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Pacira BioSciences, in sharp contrast to the overall sector.
So Dave Stack is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at Pacira BioSciences has changed from year to year.
Is Pacira BioSciences, Inc. Growing?
Pacira BioSciences, Inc. has seen earnings per share (EPS) move positively by an average of 91% a year, over the last three years (using a line of best fit). Its revenue is up 25% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Pacira BioSciences, Inc. Been A Good Investment?
Since shareholders would have lost about 21% over three years, some Pacira BioSciences, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Dave Stack is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. On another note, we've spotted 1 warning sign for Pacira BioSciences that investors should look into moving forward.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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