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Should You Worry About AcelRx Pharmaceuticals, Inc.'s (NASDAQ:ACRX) CEO Salary Level?

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Simply Wall St
·3 min read
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Vince Angotti has been the CEO of AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for AcelRx Pharmaceuticals

How Does Vince Angotti's Compensation Compare With Similar Sized Companies?

According to our data, AcelRx Pharmaceuticals, Inc. has a market capitalization of US$137m, and paid its CEO total annual compensation worth US$1.7m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$600k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$521k.

As you can see, Vince Angotti is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AcelRx Pharmaceuticals, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at AcelRx Pharmaceuticals has changed from year to year.

NasdaqGM:ACRX CEO Compensation, February 7th 2020
NasdaqGM:ACRX CEO Compensation, February 7th 2020

Is AcelRx Pharmaceuticals, Inc. Growing?

AcelRx Pharmaceuticals, Inc. has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). It achieved revenue growth of 6.5% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.

Has AcelRx Pharmaceuticals, Inc. Been A Good Investment?

Since shareholders would have lost about 45% over three years, some AcelRx Pharmaceuticals, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at AcelRx Pharmaceuticals, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if AcelRx Pharmaceuticals insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.