Yahoo Finance We Discuss Why Repligen Corporation's (NASDAQ:RGEN) CEO Compensation May Be Closely Reviewed
Key Insights
Repligen will host its Annual General Meeting on 16th of May
CEO Tony Hunt's total compensation includes salary of US$880.0k
Total compensation is 35% above industry average
Over the past three years, Repligen's EPS fell by 44% and over the past three years, the total loss to shareholders 2.8%
The results at Repligen Corporation (NASDAQ:RGEN) have been quite disappointing recently and CEO Tony Hunt bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 16th of May. 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. We present the case why we think CEO compensation is out of sync with company performance.
See our latest analysis for Repligen
How Does Total Compensation For Tony Hunt Compare With Other Companies In The Industry?
According to our data, Repligen Corporation has a market capitalization of US$9.2b, and paid its CEO total annual compensation worth US$7.9m over the year to December 2023. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at US$880k.
On examining similar-sized companies in the American Life Sciences industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$5.9m. Hence, we can conclude that Tony Hunt is remunerated higher than the industry median. What's more, Tony Hunt holds US$16m 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$880k | US$800k | 11% |
Other | US$7.0m | US$6.9m | 89% |
Total Compensation | US$7.9m | US$7.7m | 100% |
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. In Repligen's 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.
A Look at Repligen Corporation's Growth Numbers
Repligen Corporation has reduced its earnings per share by 44% a year over the last three years. Its revenue is down 22% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Repligen Corporation Been A Good Investment?
With a three year total loss of 2.8% for the shareholders, Repligen Corporation would certainly have some dissatisfied shareholders. 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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Repligen that you should be aware of before investing.
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.
