Yahoo Finance It Looks Like C4 Therapeutics, Inc.'s (NASDAQ:CCCC) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
C4 Therapeutics will host its Annual General Meeting on 20th of June
Salary of US$639.0k is part of CEO Andrew Hirsch's total remuneration
Total compensation is similar to the industry average
C4 Therapeutics' three-year loss to shareholders was 87% while its EPS was down 2.9% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at C4 Therapeutics, Inc. (NASDAQ:CCCC) recently. At the upcoming AGM on 20th of June, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.
View our latest analysis for C4 Therapeutics
Comparing C4 Therapeutics, Inc.'s CEO Compensation With The Industry
According to our data, C4 Therapeutics, Inc. has a market capitalization of US$331m, and paid its CEO total annual compensation worth US$3.8m over the year to December 2023. We note that's an increase of 46% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$639k.
For comparison, other companies in the American Biotechs industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$3.2m. From this we gather that Andrew Hirsch is paid around the median for CEOs in the industry. Furthermore, Andrew Hirsch directly owns US$1.0m worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$639k | US$614k | 17% |
Other | US$3.2m | US$2.0m | 83% |
Total Compensation | US$3.8m | US$2.6m | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. In C4 Therapeutics' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
C4 Therapeutics, Inc.'s Growth
C4 Therapeutics, Inc. has reduced its earnings per share by 2.9% a year over the last three years. It saw its revenue drop 26% over the last year.
The lack of EPS growth is certainly uninspiring. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has C4 Therapeutics, Inc. Been A Good Investment?
The return of -87% over three years would not have pleased C4 Therapeutics, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
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, the board will get the chance to explain the steps it plans to take to improve business performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for C4 Therapeutics that you should be aware of before investing.
Important note: C4 Therapeutics 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.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
