Yahoo Finance Should Shareholders Reconsider iTeos Therapeutics, Inc.'s (NASDAQ:ITOS) CEO Compensation Package?
Key Insights
iTeos Therapeutics will host its Annual General Meeting on 11th of June
Salary of US$578.9k is part of CEO Michel Detheux's total remuneration
Total compensation is 38% above industry average
iTeos Therapeutics' three-year loss to shareholders was 17% while its EPS was down 40% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at iTeos Therapeutics, Inc. (NASDAQ:ITOS) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 11th 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.
View our latest analysis for iTeos Therapeutics
Comparing iTeos Therapeutics, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that iTeos Therapeutics, Inc. has a market capitalization of US$633m, and reported total annual CEO compensation of US$5.8m for the year to December 2023. That's a notable decrease of 45% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$579k.
In comparison with other companies in the American Biotechs industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$4.2m. Accordingly, our analysis reveals that iTeos Therapeutics, Inc. pays Michel Detheux north of the industry median. What's more, Michel Detheux holds US$357k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$579k | US$556k | 10% |
Other | US$5.2m | US$10.0m | 90% |
Total Compensation | US$5.8m | US$11m | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. iTeos Therapeutics pays a modest slice of remuneration through salary, as compared 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.
iTeos Therapeutics, Inc.'s Growth
Over the last three years, iTeos Therapeutics, Inc. has shrunk its earnings per share by 40% per year. It has seen most of its revenue evaporate over the past year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has iTeos Therapeutics, Inc. Been A Good Investment?
With a three year total loss of 17% for the shareholders, iTeos Therapeutics, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for iTeos Therapeutics you should be aware of, and 1 of them makes us a bit uncomfortable.
Important note: iTeos 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.
