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Should You Worry About Aequus Pharmaceuticals Inc.'s (CVE:AQS) CEO Pay?

Simply Wall St

Doug Janzen has been the CEO of Aequus Pharmaceuticals Inc. (CVE:AQS) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Aequus Pharmaceuticals

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

According to our data, Aequus Pharmaceuticals Inc. has a market capitalization of CA$13m, and pays its CEO total annual compensation worth CA$180k. (This number is for the twelve months until December 2018). Notably, the salary of CA$180k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$263m, and the median CEO total compensation was CA$144k.

That means Doug Janzen receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Aequus Pharmaceuticals, below.

TSXV:AQS CEO Compensation, September 10th 2019

Is Aequus Pharmaceuticals Inc. Growing?

Aequus Pharmaceuticals Inc. has increased its earnings per share (EPS) by an average of 49% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -2.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Aequus Pharmaceuticals Inc. Been A Good Investment?

With a three year total loss of 45%, Aequus Pharmaceuticals Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Doug Janzen is paid around the same as most CEOs of similar size companies.

We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. 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.

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.

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. Thank you for reading.