Here's Why We Think Soligenix, Inc.'s (NASDAQ:SNGX) CEO Compensation Looks Fair
Key Insights
Soligenix will host its Annual General Meeting on 15th of December
Total pay for CEO Christopher Schaber includes US$499.5k salary
Total compensation is 47% below industry average
Soligenix's three-year loss to shareholders was 98% while its EPS grew by 39% over the past three years
Shareholders may be wondering what CEO Christopher Schaber plans to do to improve the less than great performance at Soligenix, Inc. (NASDAQ:SNGX) recently. At the next AGM coming up on 15th of December, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
See our latest analysis for Soligenix
Comparing Soligenix, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Soligenix, Inc. has a market capitalization of US$7.6m, and reported total annual CEO compensation of US$711k for the year to December 2022. That's a fairly small increase of 3.5% over the previous year. In particular, the salary of US$499.5k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the American Biotechs industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.3m. In other words, Soligenix pays its CEO lower than the industry median.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$499k | US$485k | 70% |
Other | US$212k | US$202k | 30% |
Total Compensation | US$711k | US$687k | 100% |
On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Soligenix is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Soligenix, Inc.'s Growth Numbers
Soligenix, Inc.'s earnings per share (EPS) grew 39% per year over the last three years. Its revenue is up 12% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Soligenix, Inc. Been A Good Investment?
With a total shareholder return of -98% over three years, Soligenix, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The fact that shareholders are sitting on a loss is certainly disheartening. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 7 warning signs (and 6 which are potentially serious) in Soligenix we think you should know about.
Important note: Soligenix is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
