Yahoo Finance We think Prothena Corporation plc's (NASDAQ:PRTA) CEO May Struggle To See Much Of A Pay Rise This Year
Key Insights
Prothena to hold its Annual General Meeting on 14th of May
Salary of US$630.5k is part of CEO Gene Kinney's total remuneration
Total compensation is similar to the industry average
Over the past three years, Prothena's EPS fell by 22% and over the past three years, the total shareholder return was 2.5%
CEO Gene Kinney has done a decent job of delivering relatively good performance at Prothena Corporation plc (NASDAQ:PRTA) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of May. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for Prothena
Comparing Prothena Corporation plc's CEO Compensation With The Industry
According to our data, Prothena Corporation plc has a market capitalization of US$1.3b, and paid its CEO total annual compensation worth US$7.0m over the year to December 2023. That's a fairly small increase of 4.6% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$631k.
On comparing similar companies from the American Biotechs industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$7.1m. This suggests that Prothena remunerates its CEO largely in line with the industry average. What's more, Gene Kinney holds US$301k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$631k | US$601k | 9% |
Other | US$6.4m | US$6.1m | 91% |
Total Compensation | US$7.0m | US$6.7m | 100% |
On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. It's interesting to note that Prothena allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Prothena Corporation plc's Growth Numbers
Prothena Corporation plc has reduced its earnings per share by 22% a year over the last three years. Its revenue is up 70% over the last year.
The decrease in EPS could be a concern for some investors. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Prothena Corporation plc Been A Good Investment?
Prothena Corporation plc has generated a total shareholder return of 2.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
To Conclude...
Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Prothena that investors should think about before committing capital to this stock.
Important note: Prothena 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.
