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In 2012 Daniel de Boer was appointed CEO of ProQR Therapeutics N.V. (NASDAQ:PRQR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Daniel de Boer’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that ProQR Therapeutics N.V. has a market cap of US$352m, and is paying total annual CEO compensation of €1.4m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at €726k. When we examined a selection of companies with market caps ranging from €178m to €713m, we found the median CEO total compensation was €1.6m.
So Daniel de Boer receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at ProQR Therapeutics has changed from year to year.
Is ProQR Therapeutics N.V. Growing?
ProQR Therapeutics N.V. has increased its earnings per share (EPS) by an average of 8.6% a year, over the last three years (using a line of best fit). Its revenue is up 402% over last year.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. So while I’d stop short of saying growth is absolutely outstanding, there are definitely some clear positives!
Has ProQR Therapeutics N.V. Been A Good Investment?
Boasting a total shareholder return of 87% over three years, ProQR Therapeutics 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.
Daniel de Boer is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ProQR Therapeutics (free visualization of insider trades).
If you want to buy a stock that is better than ProQR Therapeutics, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.