Bob Apple became the CEO of Antares Pharma, Inc. (NASDAQ:ATRS) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Bob Apple’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Antares Pharma, Inc. has a market cap of US$580m, and is paying total annual CEO compensation of US$3.7m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$528k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.5m.
As you can see, Bob Apple is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Antares Pharma, 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 Antares Pharma has changed from year to year.
Is Antares Pharma, Inc. Growing?
On average over the last three years, Antares Pharma, Inc. has grown earnings per share (EPS) by 22% each year (using a line of best fit). Its revenue is up 17% over last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Antares Pharma, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Antares Pharma, Inc. for providing a total return of 395% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Antares Pharma, Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Antares Pharma insiders are buying or selling shares.
Important note: Antares Pharma may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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