Yahoo Finance Here's Why It's Unlikely That MeiraGTx Holdings plc's (NASDAQ:MGTX) CEO Will See A Pay Rise This Year
Key Insights
MeiraGTx Holdings will host its Annual General Meeting on 6th of June
CEO Alexandria Forbes' total compensation includes salary of US$648.0k
Total compensation is 99% above industry average
MeiraGTx Holdings' three-year loss to shareholders was 66% while its EPS was down 4.8% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at MeiraGTx Holdings plc (NASDAQ:MGTX) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 6th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for MeiraGTx Holdings
Comparing MeiraGTx Holdings plc's CEO Compensation With The Industry
At the time of writing, our data shows that MeiraGTx Holdings plc has a market capitalization of US$321m, and reported total annual CEO compensation of US$6.3m for the year to December 2023. We note that's a decrease of 18% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$648k.
In comparison with other companies in the American Biotechs industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$3.2m. This suggests that Alexandria Forbes is paid more than the median for the industry. What's more, Alexandria Forbes holds US$7.0m 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 | US$648k | US$580k | 10% |
Other | US$5.7m | US$7.1m | 90% |
Total Compensation | US$6.3m | US$7.7m | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. In MeiraGTx Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
MeiraGTx Holdings plc's Growth
MeiraGTx Holdings plc has reduced its earnings per share by 4.8% a year over the last three years. In the last year, its revenue is down 16%.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 MeiraGTx Holdings plc Been A Good Investment?
With a total shareholder return of -66% over three years, MeiraGTx Holdings plc shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for MeiraGTx Holdings (1 is a bit concerning!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.