Yahoo Finance Here's Why Immatics N.V.'s (NASDAQ:IMTX) CEO Compensation Is The Least Of Shareholders' Concerns
Key Insights
Immatics' Annual General Meeting to take place on 20th of June
Total pay for CEO Harpreet Singh includes €488.0k salary
Total compensation is similar to the industry average
Over the past three years, Immatics' EPS grew by 49% and over the past three years, the total shareholder return was 7.5%
Performance at Immatics N.V. (NASDAQ:IMTX) has been reasonably good and CEO Harpreet Singh has done a decent job of steering the company in the right direction. 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 20th of June. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for Immatics
Comparing Immatics N.V.'s CEO Compensation With The Industry
Our data indicates that Immatics N.V. has a market capitalization of US$1.3b, and total annual CEO compensation was reported as €6.4m for the year to December 2023. Notably, that's a decrease of 15% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at €488k.
On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was €6.6m. So it looks like Immatics compensates Harpreet Singh in line with the median for the industry. Furthermore, Harpreet Singh directly owns US$17m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | €488k | €522k | 8% |
Other | €5.9m | €7.0m | 92% |
Total Compensation | €6.4m | €7.5m | 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. Immatics pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Immatics N.V.'s Growth
Immatics N.V. has seen its earnings per share (EPS) increase by 49% a year over the past three years. In the last year, its revenue is down 6.6%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Immatics N.V. Been A Good Investment?
Immatics N.V. has not done too badly by shareholders, with a total return of 7.5%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is a bit unpleasant) in Immatics we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
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