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Armando Anido has been the CEO of Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Armando Anido’s Compensation Compare With Similar Sized Companies?
Our data indicates that Zynerba Pharmaceuticals, Inc. is worth US$91m, and total annual CEO compensation is US$2.4m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$552k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$299k.
It would therefore appear that Zynerba Pharmaceuticals, Inc. pays Armando Anido more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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 Zynerba Pharmaceuticals has changed from year to year.
Is Zynerba Pharmaceuticals, Inc. Growing?
Earnings per share at Zynerba Pharmaceuticals, Inc. are much the same as they were three years ago, albeit slightly lower, based on the trend. Its revenue is down -100% over last year.
The lack of earnings per share growth in the last three years is unimpressive. And the impression is worse when you consider revenue is down year-on-year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has Zynerba Pharmaceuticals, Inc. Been A Good Investment?
Given the total loss of 14% over three years, many shareholders in Zynerba Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Zynerba Pharmaceuticals, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Zynerba Pharmaceuticals shares (free trial).
If you want to buy a stock that is better than Zynerba 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 firstname.lastname@example.org. 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.