Armando Anido has been the CEO of Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) since 2014, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Armando Anido Compare With Other Companies In The Industry?
Our data indicates that Zynerba Pharmaceuticals, Inc. has a market capitalization of US$157m, and total annual CEO compensation was reported as US$1.4m for the year to December 2019. We note that’s a decrease of 32% compared to last year. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at US$568k.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.8m. This suggests that Zynerba Pharmaceuticals remunerates its CEO largely in line with the industry average. What’s more, Armando Anido holds US$2.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. Zynerba Pharmaceuticals pays out 41% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.
Zynerba Pharmaceuticals, Inc.’s Growth
Zynerba Pharmaceuticals, Inc. has seen its earnings per share (EPS) increase by 19% a year over the past three years. It achieved revenue growth of 25% 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Zynerba Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 63% for the shareholders, Zynerba Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Armando is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. However, earnings growth is positive over the same time frame. Considering positive earnings growth, we’d say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company’s key performance areas. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Zynerba Pharmaceuticals we think you should know about.
Switching gears from Zynerba Pharmaceuticals, 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.
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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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