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We Discuss Why BioNTech SE's (NASDAQ:BNTX) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

Key Insights

  • BioNTech will host its Annual General Meeting on 17th of May

  • CEO Ugur Sahin's total compensation includes salary of €700.0k

  • The overall pay is 80% below the industry average

  • Over the past three years, BioNTech's EPS fell by 54% and over the past three years, the total loss to shareholders 52%

The underwhelming performance at BioNTech SE (NASDAQ:BNTX) recently has probably not pleased shareholders. The next AGM coming up on 17th of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for BioNTech

Comparing BioNTech SE's CEO Compensation With The Industry

At the time of writing, our data shows that BioNTech SE has a market capitalization of US$22b, and reported total annual CEO compensation of €3.1m for the year to December 2023. That's a notable decrease of 52% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at €700k.

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On comparing similar companies in the American Biotechs industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was €15m. That is to say, Ugur Sahin is paid under the industry median. What's more, Ugur Sahin holds US$3.8b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2023

2022

Proportion (2023)

Salary

€700k

€360k

23%

Other

€2.4m

€6.0m

77%

Total Compensation

€3.1m

€6.3m

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. BioNTech is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at BioNTech SE's Growth Numbers

Over the last three years, BioNTech SE has shrunk its earnings per share by 54% per year. In the last year, its revenue is down 78%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 BioNTech SE Been A Good Investment?

With a total shareholder return of -52% over three years, BioNTech SE shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for BioNTech that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.