Shareholders Will Probably Be Cautious Of Increasing INmune Bio, Inc.'s (NASDAQ:INMB) CEO Compensation At The Moment
Key Insights
INmune Bio's Annual General Meeting to take place on 19th of July
CEO RJ Tesi's total compensation includes salary of US$500.5k
Total compensation is 39% below industry average
Over the past three years, INmune Bio's EPS fell by 4.8% and over the past three years, the total loss to shareholders 59%
The underwhelming performance at INmune Bio, Inc. (NASDAQ:INMB) recently has probably not pleased shareholders. At the upcoming AGM on 19th of July, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
View our latest analysis for INmune Bio
Comparing INmune Bio, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that INmune Bio, Inc. has a market capitalization of US$166m, and reported total annual CEO compensation of US$1.7m for the year to December 2023. Notably, that's an increase of 17% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$501k.
In comparison with other companies in the American Biotechs industry with market capitalizations ranging from US$100m to US$400m, the reported median CEO total compensation was US$2.8m. Accordingly, INmune Bio pays its CEO under the industry median. Furthermore, RJ Tesi directly owns US$14m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$501k | US$455k | 30% |
Other | US$1.2m | US$990k | 70% |
Total Compensation | US$1.7m | US$1.4m | 100% |
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. INmune Bio pays out 30% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
INmune Bio, Inc.'s Growth
Over the last three years, INmune Bio, Inc. has shrunk its earnings per share by 4.8% per year. Its revenue is down 47% over the previous year.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 INmune Bio, Inc. Been A Good Investment?
The return of -59% over three years would not have pleased INmune Bio, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for INmune Bio you should be aware of, and 1 of them is potentially serious.
Switching gears from INmune Bio, 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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