Yahoo Finance Is Acceleron Pharma Inc.'s (NASDAQ:XLRN) CEO Pay Justified?
Habib Dable became the CEO of Acceleron Pharma Inc. (NASDAQ:XLRN) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Acceleron Pharma
How Does Habib Dable's Compensation Compare With Similar Sized Companies?
According to our data, Acceleron Pharma Inc. has a market capitalization of US$5.0b, and paid its CEO total annual compensation worth US$4.3m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$567k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.3m.
Most shareholders would consider it a positive that Habib Dable takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Acceleron Pharma has changed over time.
Is Acceleron Pharma Inc. Growing?
On average over the last three years, Acceleron Pharma Inc. has shrunk earnings per share by 11% each year (measured with a line of best fit). It achieved revenue growth of 177% over the last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has Acceleron Pharma Inc. Been A Good Investment?
Most shareholders would probably be pleased with Acceleron Pharma Inc. for providing a total return of 254% over three years. 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...
It appears that Acceleron Pharma Inc. remunerates its CEO below most similar sized companies.
Habib Dable is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. Shareholders may want to check for free if Acceleron Pharma insiders are buying or selling shares.
If you want to buy a stock that is better than Acceleron Pharma, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
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. Thank you for reading.
