How Is Pieris Pharmaceuticals' (NASDAQ:PIRS) CEO Paid Relative To Peers?

Steve Yoder became the CEO of Pieris Pharmaceuticals, Inc. (NASDAQ:PIRS) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Pieris Pharmaceuticals

How Does Total Compensation For Steve Yoder Compare With Other Companies In The Industry?

Our data indicates that Pieris Pharmaceuticals, Inc. has a market capitalization of US$165m, and total annual CEO compensation was reported as US$1.6m for the year to December 2019. That's a notable decrease of 39% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$515k.

For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$1.6m. So it looks like Pieris Pharmaceuticals compensates Steve Yoder in line with the median for the industry.

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. According to our research, Pieris Pharmaceuticals has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Pieris Pharmaceuticals, Inc.'s Growth

Over the last three years, Pieris Pharmaceuticals, Inc. has shrunk its earnings per share by 1.8% per year. Its revenue is up 53% over the last year.

Investors would be a bit wary of companies that have lower earnings But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Pieris Pharmaceuticals, Inc. Been A Good Investment?

Given the total shareholder loss of 33% over three years, many shareholders in Pieris Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Steve is compensated close to the median for companies of its size, and which belong to the same industry. But revenue growth seems to be inching northward, a heartening sign for the company. In contrast, over the same time span, shareholder returns are negative. EPS growth is also negative, adding insult to injury. We'd say CEO compensation isn't unfair, but shareholders may be wary of a bump in pay before the company substantially improves overall performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Pieris Pharmaceuticals (1 is a bit unpleasant!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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