Yahoo Finance It Looks Like Milestone Pharmaceuticals Inc.'s (NASDAQ:MIST) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Milestone Pharmaceuticals' Annual General Meeting to take place on 13th of June
Total pay for CEO Joe Oliveto includes US$601.5k salary
Total compensation is 130% above industry average
Milestone Pharmaceuticals' EPS declined by 9.8% over the past three years while total shareholder loss over the past three years was 73%
Shareholders will probably not be too impressed with the underwhelming results at Milestone Pharmaceuticals Inc. (NASDAQ:MIST) recently. At the upcoming AGM on 13th of June, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Milestone Pharmaceuticals
How Does Total Compensation For Joe Oliveto Compare With Other Companies In The Industry?
Our data indicates that Milestone Pharmaceuticals Inc. has a market capitalization of US$98m, and total annual CEO compensation was reported as US$2.0m for the year to December 2023. Notably, that's a decrease of 33% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$602k.
In comparison with other companies in the American Pharmaceuticals industry with market capitalizations under US$200m, the reported median total CEO compensation was US$860k. This suggests that Joe Oliveto is paid more than the median for the industry. Furthermore, Joe Oliveto directly owns US$422k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$602k | US$584k | 30% |
Other | US$1.4m | US$2.4m | 70% |
Total Compensation | US$2.0m | US$3.0m | 100% |
On an industry level, around 29% of total compensation represents salary and 71% is other remuneration. Our data reveals that Milestone Pharmaceuticals allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Milestone Pharmaceuticals Inc.'s Growth Numbers
Milestone Pharmaceuticals Inc. has reduced its earnings per share by 9.8% a year over the last three years. In the last year, its revenue has collapsed effectively to zero.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Milestone Pharmaceuticals Inc. Been A Good Investment?
With a total shareholder return of -73% over three years, Milestone Pharmaceuticals Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too 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.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Milestone Pharmaceuticals you should be aware of, and 2 of them make us uncomfortable.
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.
