CEO Neal Walker has done a decent job of delivering relatively good performance at Aclaris Therapeutics, Inc. (NASDAQ:ACRS) recently. As shareholders go into the upcoming AGM on 03 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
How Does Total Compensation For Neal Walker Compare With Other Companies In The Industry?
At the time of writing, our data shows that Aclaris Therapeutics, Inc. has a market capitalization of US$1.1b, and reported total annual CEO compensation of US$1.6m for the year to December 2020. Notably, that's a decrease of 49% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$424k.
For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$2.3m. From this we gather that Neal Walker is paid around the median for CEOs in the industry. Furthermore, Neal Walker directly owns US$26m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 28% of total compensation represents salary, while the remainder of 72% is other remuneration. Although there is a difference in how total compensation is set, Aclaris Therapeutics more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Aclaris Therapeutics, Inc.'s Growth
Aclaris Therapeutics, Inc. has seen its earnings per share (EPS) increase by 22% a year over the past three years. It achieved revenue growth of 57% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Aclaris Therapeutics, Inc. Been A Good Investment?
With a total shareholder return of 18% over three years, Aclaris Therapeutics, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 3 warning signs for Aclaris Therapeutics that investors should be aware of in a dynamic business environment.
Switching gears from Aclaris Therapeutics, 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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