Increases to Antares Pharma, Inc.’s (NASDAQ:ATRS) CEO Compensation Might Cool off for now – Simply Wall St

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Under the guidance of CEO Bob Apple, Antares Pharma, Inc. (NASDAQ:ATRS) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 10 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Antares Pharma

Comparing Antares Pharma, Inc.’s CEO Compensation With the industry

Our data indicates that Antares Pharma, Inc. has a market capitalization of US$695m, and total annual CEO compensation was reported as US$3.8m for the year to December 2020. That’s a modest increase of 6.8% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$592k.

On examining similar-sized companies in the industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$2.7m. This suggests that Bob Apple is paid more than the median for the industry. What’s more, Bob Apple holds US$6.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component 2020 2019 Proportion (2020)
Salary US$592k US$572k 16%
Other US$3.2m US$2.9m 84%
Total Compensation US$3.8m US$3.5m 100%

On an industry level, roughly 28% of total compensation represents salary and 72% is other remuneration. Antares Pharma sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NasdaqCM:ATRS CEO Compensation June 5th 2021

Antares Pharma, Inc.’s Growth

Over the past three years, Antares Pharma, Inc. has seen its earnings per share (EPS) grow by 140% per year. In the last year, its revenue is up 19%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..

Has Antares Pharma, Inc. Been A Good Investment?

We think that the total shareholder return of 53%, over three years, would leave most Antares Pharma, Inc. shareholders smiling. 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…

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Antares Pharma that investors should look into moving forward.

Switching gears from Antares Pharma, 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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