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Does Aequus Pharmaceuticals Inc.'s (CVE:AQS) CEO Pay Compare Well With Peers?

Doug Janzen has been the CEO of Aequus Pharmaceuticals Inc. (CVE:AQS) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Aequus Pharmaceuticals

How Does Doug Janzen's Compensation Compare With Similar Sized Companies?

Our data indicates that Aequus Pharmaceuticals Inc. is worth CA$10m, and total annual CEO compensation was reported as CA$180k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$180k. We took a group of companies with market capitalizations below CA$265m, and calculated the median CEO total compensation to be CA$205k.

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So Doug Janzen receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Aequus Pharmaceuticals has changed from year to year.

TSXV:AQS CEO Compensation, February 18th 2020
TSXV:AQS CEO Compensation, February 18th 2020

Is Aequus Pharmaceuticals Inc. Growing?

Aequus Pharmaceuticals Inc. has increased its earnings per share (EPS) by an average of 46% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 13%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Aequus Pharmaceuticals Inc. Been A Good Investment?

Since shareholders would have lost about 53% over three years, some Aequus Pharmaceuticals Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Doug Janzen is close enough to the median pay for a CEO of a similar sized company .

We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Aequus Pharmaceuticals (free visualization of insider trades).

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

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.