Christopher Schaber became the CEO of Soligenix, Inc. (NASDAQ:SNGX) in 2006, 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 assess whether Soligenix pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Christopher Schaber Compare With Other Companies In The Industry?
At the time of writing, our data shows that Soligenix, Inc. has a market capitalization of US$56m, and reported total annual CEO compensation of US$688k for the year to December 2019. Notably, that's an increase of 11% over the year before. Notably, the salary which is US$466.1k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.1m. This suggests that Christopher Schaber is paid below the industry median. Furthermore, Christopher Schaber directly owns US$100k worth of shares in the company.
On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. It's interesting to note that Soligenix pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Soligenix, Inc.'s Growth
Soligenix, Inc.'s earnings per share (EPS) grew 29% per year over the last three years. Its revenue is down 34% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Soligenix, Inc. Been A Good Investment?
Given the total shareholder loss of 16% over three years, many shareholders in Soligenix, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, Soligenix, Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 4 warning signs for Soligenix that investors should look into moving forward.
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.
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.
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