Yahoo Finance It Looks Like Intellia Therapeutics, Inc.'s (NASDAQ:NTLA) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Intellia Therapeutics will host its Annual General Meeting on 12th of June
CEO John Leonard's total compensation includes salary of US$660.0k
The total compensation is 62% higher than the average for the industry
Intellia Therapeutics' three-year loss to shareholders was 71% while its EPS was down 20% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at Intellia Therapeutics, Inc. (NASDAQ:NTLA) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 12th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Intellia Therapeutics
Comparing Intellia Therapeutics, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Intellia Therapeutics, Inc. has a market capitalization of US$2.2b, and reported total annual CEO compensation of US$12m for the year to December 2023. That's a notable increase of 15% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$660k.
For comparison, other companies in the American Biotechs industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$7.2m. Hence, we can conclude that John Leonard is remunerated higher than the industry median. Moreover, John Leonard also holds US$19m worth of Intellia Therapeutics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$660k | US$630k | 6% |
Other | US$11m | US$9.5m | 94% |
Total Compensation | US$12m | US$10m | 100% |
On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Intellia Therapeutics 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.
Intellia Therapeutics, Inc.'s Growth
Intellia Therapeutics, Inc. has reduced its earnings per share by 20% a year over the last three years. In the last year, its revenue is down 1.6%.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Intellia Therapeutics, Inc. Been A Good Investment?
The return of -71% over three years would not have pleased Intellia Therapeutics, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
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, the board will get the chance to explain the steps it plans to take to improve business performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Intellia Therapeutics that investors should be aware of in a dynamic business environment.
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.
