Most Shareholders Will Probably Agree With Xenetic Biosciences, Inc.'s (NASDAQ:XBIO) CEO Compensation
Key Insights
Xenetic Biosciences will host its Annual General Meeting on 6th of December
Total pay for CEO Jeff Eisenberg includes US$404.3k salary
Total compensation is 54% below industry average
Over the past three years, Xenetic Biosciences' EPS grew by 64% and over the past three years, the total loss to shareholders 71%
Shareholders may be wondering what CEO Jeff Eisenberg plans to do to improve the less than great performance at Xenetic Biosciences, Inc. (NASDAQ:XBIO) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 6th of December. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
See our latest analysis for Xenetic Biosciences
Comparing Xenetic Biosciences, Inc.'s CEO Compensation With The Industry
According to our data, Xenetic Biosciences, Inc. has a market capitalization of US$5.0m, and paid its CEO total annual compensation worth US$633k over the year to December 2022. We note that's a decrease of 16% compared to last year. Notably, the salary which is US$404.3k, represents most of the total compensation being paid.
On comparing similar-sized companies in the American Biotechs industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.4m. That is to say, Jeff Eisenberg is paid under the industry median.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$404k | US$368k | 64% |
Other | US$229k | US$383k | 36% |
Total Compensation | US$633k | US$750k | 100% |
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. It's interesting to note that Xenetic Biosciences pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Xenetic Biosciences, Inc.'s Growth Numbers
Xenetic Biosciences, Inc. has seen its earnings per share (EPS) increase by 64% a year over the past three years. It achieved revenue growth of 52% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Xenetic Biosciences, Inc. Been A Good Investment?
With a total shareholder return of -71% over three years, Xenetic Biosciences, Inc. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
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 focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 2 which are a bit concerning) in Xenetic Biosciences we think you should know about.
Important note: Xenetic Biosciences 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
