It's Unlikely That ProQR Therapeutics N.V.'s (NASDAQ:PRQR) CEO Will See A Huge Pay Rise This Year

CEO Daniel de Boer has done a decent job of delivering relatively good performance at ProQR Therapeutics N.V. (NASDAQ:PRQR) recently. As shareholders go into the upcoming AGM on 19 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for ProQR Therapeutics

How Does Total Compensation For Daniel de Boer Compare With Other Companies In The Industry?

At the time of writing, our data shows that ProQR Therapeutics N.V. has a market capitalization of US$418m, and reported total annual CEO compensation of €2.6m for the year to December 2020. We note that's an increase of 16% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €449k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of €1.9m. This suggests that Daniel de Boer is paid more than the median for the industry.

Component	2020	2019	Proportion (2020)
Salary	€449k	€449k	17%
Other	€2.2m	€1.8m	83%
Total Compensation	€2.6m	€2.3m	100%

On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. In ProQR Therapeutics' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at ProQR Therapeutics N.V.'s Growth Numbers

Over the past three years, ProQR Therapeutics N.V. has seen its earnings per share (EPS) grow by 11% per year. It saw its revenue drop 49% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ProQR Therapeutics N.V. Been A Good Investment?

ProQR Therapeutics N.V. has generated a total shareholder return of 30% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 4 warning signs for ProQR Therapeutics that investors should look into moving forward.

Switching gears from ProQR 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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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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