Is Pieris Pharmaceuticals, Inc.’s (NASDAQ:PIRS) CEO Being Overpaid?

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In 2014 Steve Yoder was appointed CEO of Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Pieris Pharmaceuticals

How Does Steve Yoder’s Compensation Compare With Similar Sized Companies?

Our data indicates that Pieris Pharmaceuticals, Inc. is worth US$162m, and total annual CEO compensation is US$1.3m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$450k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$907k.

Thus we can conclude that Steve Yoder receives more in total compensation than the median of a group of companies in the same market, and of similar size to Pieris Pharmaceuticals, Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Pieris Pharmaceuticals has changed from year to year.

NasdaqCM:PIRS CEO Compensation, February 21st 2019
NasdaqCM:PIRS CEO Compensation, February 21st 2019

Is Pieris Pharmaceuticals, Inc. Growing?

Pieris Pharmaceuticals, Inc. has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 330%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Pieris Pharmaceuticals, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Pieris Pharmaceuticals, Inc. for providing a total return of 81% 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.

In Summary…

We examined the amount Pieris Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Pieris Pharmaceuticals shares (free trial).

If you want to buy a stock that is better than Pieris Pharmaceuticals, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.