Yahoo Finance Increases to scPharmaceuticals Inc.'s (NASDAQ:SCPH) CEO Compensation Might Cool off for now
Key Insights
scPharmaceuticals' Annual General Meeting to take place on 11th of June
Total pay for CEO John Tucker includes US$603.5k salary
The total compensation is 114% higher than the average for the industry
scPharmaceuticals' EPS declined by 11% over the past three years while total shareholder loss over the past three years was 29%
In the past three years, the share price of scPharmaceuticals Inc. (NASDAQ:SCPH) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 11th of June, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.
View our latest analysis for scPharmaceuticals
Comparing scPharmaceuticals Inc.'s CEO Compensation With The Industry
Our data indicates that scPharmaceuticals Inc. has a market capitalization of US$144m, and total annual CEO compensation was reported as US$1.8m for the year to December 2023. We note that's an increase of 15% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$604k.
On comparing similar-sized companies in the American Pharmaceuticals industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$860k. This suggests that John Tucker is paid more than the median for the industry. What's more, John Tucker holds US$364k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$604k | US$580k | 33% |
Other | US$1.2m | US$1.0m | 67% |
Total Compensation | US$1.8m | US$1.6m | 100% |
On an industry level, around 29% of total compensation represents salary and 71% is other remuneration. According to our research, scPharmaceuticals has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
scPharmaceuticals Inc.'s Growth
Over the last three years, scPharmaceuticals Inc. has shrunk its earnings per share by 11% per year. It achieved revenue growth of 755% over the last year.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 scPharmaceuticals Inc. Been A Good Investment?
Given the total shareholder loss of 29% over three years, many shareholders in scPharmaceuticals Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
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 1 warning sign for scPharmaceuticals that investors should think about before committing capital to this stock.
Switching gears from scPharmaceuticals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
