How Much Is Infinity Pharmaceuticals, Inc. (NASDAQ:INFI) Paying Its CEO?

Adelene Perkins grew to become the CEO of Infinity Prescribed drugs, Inc. (NASDAQ:INFI) in 2010, and we expect it is a good time to have a look at the manager’s compensation towards the backdrop of general firm efficiency. This evaluation may also look to evaluate whether or not the CEO is appropriately paid, contemplating latest earnings progress and investor returns for Infinity Prescribed drugs.

Check out our latest analysis for Infinity Pharmaceuticals

How Does Complete Compensation For Adelene Perkins Examine With Different Corporations In The Trade?

In keeping with our information, Infinity Prescribed drugs, Inc. has a market capitalization of US$63m, and paid its CEO complete annual compensation value US$1.7m over the yr to December 2019. We notice that is a lower of 31% in comparison with final yr. We predict complete compensation is extra vital however our information reveals that the CEO wage is decrease, at US$690k.

As compared with different corporations within the trade with market capitalizations beneath US$200m, the reported median complete CEO compensation was US$1.0m. Accordingly, our evaluation reveals that Infinity Prescribed drugs, Inc. pays Adelene Perkins north of the trade median. Furthermore, Adelene Perkins additionally holds US$866k value of Infinity Prescribed drugs inventory instantly beneath their very own identify.

On an trade stage, roughly 23% of complete compensation represents wage and 77% is different remuneration. It is attention-grabbing to notice that Infinity Prescribed drugs pays out a larger portion of remuneration by way of wage, in comparison with the trade. If non-salary compensation dominates complete pay, it is an indicator that the manager’s wage is tied to firm efficiency.

Infinity Prescribed drugs, Inc.’s Progress

Over the previous three years, Infinity Prescribed drugs, Inc. has seen its earnings per share (EPS) develop by 20% per yr. Within the final yr, its income is down 94%.

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Shareholders could be glad to know that the corporate has improved itself over the previous couple of years. It is at all times a troublesome state of affairs when revenues usually are not rising, however finally income are extra vital. Shifting away from present type for a second, it might be vital to examine this free visual depiction of what analysts expect for the future.

Has Infinity Prescribed drugs, Inc. Been A Good Funding?

Since shareholders would have misplaced about 3.6% over three years, some Infinity Prescribed drugs, Inc. buyers would certainly be feeling destructive feelings. Due to this fact, it could be upsetting for shareholders if the CEO had been paid generously.

To Conclude…

As we touched on above, Infinity Prescribed drugs, Inc. is at present paying its CEO greater than the median pay for CEOs of corporations belonging to the identical trade and with comparable market capitalizations. However the firm has impressed with its earnings per share progress, however shareholder returns — over the identical interval — have been disappointing. Though we do not suppose the CEO pay is simply too excessive, contemplating destructive investor returns, it’s extra beneficiant than modest.

CEO compensation is a vital side to maintain your eyes on however buyers additionally have to maintain their eyes open for different points associated to enterprise efficiency. We did our analysis and noticed 4 warning signs for Infinity Pharmaceuticals that buyers ought to look into transferring ahead.

Necessary notice: Infinity Prescribed drugs is an thrilling inventory, however we perceive buyers could also be on the lookout for an unencumbered steadiness sheet and blockbuster returns. You would possibly discover one thing higher in this list of interesting companies with high ROE and low debt.

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