Neal Walker became the CEO of Aclaris Therapeutics, Inc. (NASDAQ:ACRS) in 2012, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Aclaris Therapeutics.
How Does Total Compensation For Neal Walker Compare With Other Companies In The Industry?
At the time of writing, our data shows that Aclaris Therapeutics, Inc. has a market capitalization of US$156m, and reported total annual CEO compensation of US$3.2m for the year to December 2019. We note that's a decrease of 28% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$500k.
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$1.7m. Accordingly, our analysis reveals that Aclaris Therapeutics, Inc. pays Neal Walker north of the industry median. What's more, Neal Walker holds US$4.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. Aclaris Therapeutics pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Aclaris Therapeutics, Inc.'s Growth Numbers
Aclaris Therapeutics, Inc.'s earnings per share (EPS) grew 5.6% per year over the last three years. In the last year, its revenue is up 22%.
We think the revenue growth is good. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. 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 Aclaris Therapeutics, Inc. Been A Good Investment?
Since shareholders would have lost about 84% over three years, some Aclaris Therapeutics, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we noted earlier, Aclaris Therapeutics pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing for Aclaris Therapeutics, and although EPS growth is steady, it hasn't set the world on fire. This doesn't look great when you consider Neal is taking home compensation north of the industry average. With such poor returns, we would understand if shareholders had concerns related to the CEO's pay.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Aclaris Therapeutics you should be aware of, and 2 of them can't be ignored.
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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