Yahoo Finance We Think Some Shareholders May Hesitate To Increase Protagonist Therapeutics, Inc.'s (NASDAQ:PTGX) CEO Compensation
Key Insights
Protagonist Therapeutics to hold its Annual General Meeting on 20th of June
Salary of US$655.2k is part of CEO Dinesh Patel's total remuneration
The total compensation is similar to the average for the industry
Protagonist Therapeutics' EPS grew by 26% over the past three years while total shareholder loss over the past three years was 21%
In the past three years, the share price of Protagonist Therapeutics, Inc. (NASDAQ:PTGX) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 20th of June. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Protagonist Therapeutics
How Does Total Compensation For Dinesh Patel Compare With Other Companies In The Industry?
According to our data, Protagonist Therapeutics, Inc. has a market capitalization of US$2.0b, and paid its CEO total annual compensation worth US$7.1m over the year to December 2023. That's a notable increase of 18% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$655k.
In comparison with other companies in the American Biotechs industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$7.1m. So it looks like Protagonist Therapeutics compensates Dinesh Patel in line with the median for the industry. What's more, Dinesh Patel holds US$14m 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$655k | US$630k | 9% |
Other | US$6.4m | US$5.4m | 91% |
Total Compensation | US$7.1m | US$6.0m | 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. In Protagonist Therapeutics' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Protagonist Therapeutics, Inc.'s Growth
Protagonist Therapeutics, Inc. has seen its earnings per share (EPS) increase by 26% a year over the past three years. It achieved revenue growth of 36,565% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Protagonist Therapeutics, Inc. Been A Good Investment?
Given the total shareholder loss of 21% over three years, many shareholders in Protagonist Therapeutics, Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Protagonist Therapeutics you should be aware of, and 1 of them can't be ignored.
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.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
