Daniel de Boer became the CEO of ProQR Therapeutics N.V. (NASDAQ:PRQR) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Daniel de Boer’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that ProQR Therapeutics N.V. has a market cap of US$597m, and is paying total annual CEO compensation of €1.2m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at €570k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of €176m to €704m. The median total CEO compensation was €1.4m.
So Daniel de Boer is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at ProQR Therapeutics has changed from year to year.
Is ProQR Therapeutics N.V. Growing?
On average over the last three years, ProQR Therapeutics N.V. has shrunk earnings per share by 11% each year. It achieved revenue growth of 384% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has ProQR Therapeutics N.V. Been A Good Investment?
I think that the total shareholder return of 137%, over three years, would leave most ProQR Therapeutics N.V. shareholders smiling. 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.
Daniel de Boer is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ProQR Therapeutics.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.