U.S. markets close in 1 hour 22 minutes
  • S&P 500

    3,261.12
    +24.20 (+0.75%)
     
  • Dow 30

    26,938.15
    +175.02 (+0.65%)
     
  • Nasdaq

    10,730.40
    +97.42 (+0.92%)
     
  • Russell 2000

    1,460.47
    +9.02 (+0.62%)
     
  • Crude Oil

    40.31
    +0.38 (+0.95%)
     
  • Gold

    1,870.50
    +2.10 (+0.11%)
     
  • Silver

    23.11
    +0.01 (+0.02%)
     
  • EUR/USD

    1.1684
    +0.0022 (+0.19%)
     
  • 10-Yr Bond

    0.6690
    -0.0070 (-1.04%)
     
  • GBP/USD

    1.2753
    +0.0028 (+0.22%)
     
  • USD/JPY

    105.3980
    +0.0660 (+0.06%)
     
  • BTC-USD

    10,659.49
    +410.02 (+4.00%)
     
  • CMC Crypto 200

    217.11
    +8.17 (+3.91%)
     
  • FTSE 100

    5,822.78
    -76.48 (-1.30%)
     
  • Nikkei 225

    23,087.82
    -258.67 (-1.11%)
     

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

Simply Wall St

Adelene Perkins became the CEO of Infinity Pharmaceuticals, Inc. (NASDAQ:INFI) in 2010, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Infinity Pharmaceuticals.

Check out our latest analysis for Infinity Pharmaceuticals

How Does Total Compensation For Adelene Perkins Compare With Other Companies In The Industry?

According to our data, Infinity Pharmaceuticals, Inc. has a market capitalization of US$63m, and paid its CEO total annual compensation worth US$1.7m over the year to December 2019. We note that's a decrease of 31% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$690k.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.0m. Accordingly, our analysis reveals that Infinity Pharmaceuticals, Inc. pays Adelene Perkins north of the industry median. Moreover, Adelene Perkins also holds US$866k worth of Infinity Pharmaceuticals stock directly under their own name.

Component

2019

2018

Proportion (2019)

Salary

US$690k

US$690k

41%

Other

US$991k

US$1.7m

59%

Total Compensation

US$1.7m

US$2.4m

100%

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. It's interesting to note that Infinity Pharmaceuticals pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

Infinity Pharmaceuticals, Inc.'s Growth

Over the past three years, Infinity Pharmaceuticals, Inc. has seen its earnings per share (EPS) grow by 20% per year. In the last year, its revenue is down 94%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Infinity Pharmaceuticals, Inc. Been A Good Investment?

Since shareholders would have lost about 3.6% over three years, some Infinity Pharmaceuticals, Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, Infinity Pharmaceuticals, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its earnings per share growth, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 4 warning signs for Infinity Pharmaceuticals that investors should look into moving forward.

Important note: Infinity Pharmaceuticals 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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.