What Did Affimed's (NASDAQ:AFMD) CEO Take Home Last Year?

Adi Hoess became the CEO of Affimed N.V. (NASDAQ:AFMD) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Affimed

Comparing Affimed N.V.'s CEO Compensation With the industry

According to our data, Affimed N.V. has a market capitalization of US$462m, and paid its CEO total annual compensation worth €1.3m over the year to December 2019. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €474k.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was €1.6m. This suggests that Affimed remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. According to our research, Affimed has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Affimed N.V.'s Growth Numbers

Affimed N.V. has seen its earnings per share (EPS) increase by 13% a year over the past three years. In the last year, its revenue is down 44%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Affimed N.V. Been A Good Investment?

Boasting a total shareholder return of 175% over three years, Affimed N.V. has done well by shareholders. 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.

To Conclude...

As previously discussed, Adi is compensated close to the median for companies of its size, and which belong to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Affimed that investors should look into moving forward.

Switching gears from Affimed, 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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