Investors Beware: CEO Compensation at Crinetics Pharmaceuticals Under Scrutiny Ahead of AGM
Key Insights:
• Crinetics Pharmaceuticals to hold Annual General Meeting on 7th of June
• CEO R. Struthers’ total compensation includes a salary of US$614.0k
• Compensation is 31% lower than industry average
• EPS declined by 14% over the past three years while shareholder return was 162%
As shareholders prepare to attend Crinetics Pharmaceuticals, Inc.’s (NASDAQ:CRNX) Annual General Meeting on the 7th of June, the focus is on CEO R. Struthers’ compensation package. With the company’s lackluster performance in recent years, investors are eager to see how executive remuneration will be addressed at the upcoming AGM.
Comparing R. Struthers’ total compensation with other industry peers, Crinetics Pharmaceuticals’ CEO receives a lesser amount, with a salary component of US$614k. The company’s market capitalization stands at US$3.6b, and the CEO’s total annual compensation was reported at US$5.7m for the year ending December 2023.
In contrast to the American Biotechs industry median CEO total compensation of US$8.4m, Crinetics Pharmaceuticals’ compensation falls below the average. Additionally, R. Struthers holds US$45m worth of shares in the company, indicating a strong alignment of interests with shareholders.
While the company has seen a decline in EPS by 14% annually over the past three years and a 54% decrease in revenue, the total shareholder return has been a promising 162%. This discrepancy raises questions about the correlation between executive compensation and company performance.
As investors weigh in on the CEO’s remuneration, it is essential to consider the broader business performance indicators and potential warning signs. Shareholders are encouraged to revisit their investment thesis and stay informed about the company’s future outlook.
Ultimately, while CEO compensation is a significant factor in evaluating a company’s governance, investors should conduct a comprehensive analysis of all aspects of the business before making investment decisions.