How Does Pieris Pharmaceuticals' (NASDAQ:PIRS) CEO Salary Compare to Peers?

Steve Yoder has been the CEO of Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) 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.

View our latest analysis for Pieris Pharmaceuticals

Comparing Pieris Pharmaceuticals, Inc.'s CEO Compensation With the industry

According to our data, Pieris Pharmaceuticals, Inc. has a market capitalization of US$158m, and paid its CEO total annual compensation worth US$1.6m over the year to December 2019. We note that's a decrease of 39% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$515k.

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$1.6m. This suggests that Pieris Pharmaceuticals remunerates its CEO largely in line with the industry average.

Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. Pieris Pharmaceuticals pays out 32% 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.

Pieris Pharmaceuticals, Inc.'s Growth

Over the last three years, Pieris Pharmaceuticals, Inc. has shrunk its earnings per share by 2.7% per year. In the last year, its revenue is up 31%.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Pieris Pharmaceuticals, Inc. Been A Good Investment?

Given the total shareholder loss of 54% over three years, many shareholders in Pieris Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Steve is compensated close to the median for companies of its size, and which belong to the same industry. Still, the company is logging healthy revenue growth over the last year. In contrast, over the same time span, shareholder returns are negative. EPS is also not growing, undoubtedly leading to further headaches. It's tough for us to say Steve is overpaid but a mixed bag in terms of performance will surely irk shareholders and reduce chances of a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Pieris Pharmaceuticals (1 is a bit unpleasant!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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