Increases to AstraZeneca PLC's (LON:AZN) CEO Compensation Might Cool off for now

Key Insights

• AstraZeneca will host its Annual General Meeting on 11th of April
• CEO Pascal Claude Soriot's total compensation includes salary of US$1.86m
• The overall pay is 113% above the industry average
• Over the past three years, AstraZeneca's EPS grew by 286% and over the past three years, the total shareholder return was 14%

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CEO Pascal Claude Soriot has done a decent job of delivering relatively good performance at AstraZeneca PLC (LON:AZN) recently. As shareholders go into the upcoming AGM on 11th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for AstraZeneca

How Does Total Compensation For Pascal Claude Soriot Compare With Other Companies In The Industry?

According to our data, AstraZeneca PLC has a market capitalization of UK£177b, and paid its CEO total annual compensation worth US$18m over the year to December 2024. That's a notable decrease of 17% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.9m.

In comparison with other companies in the British Pharmaceuticals industry with market capitalizations over UK£6.1b, the reported median total CEO compensation was US$8.6m. This suggests that Pascal Claude Soriot is paid more than the median for the industry. Moreover, Pascal Claude Soriot also holds UK£43m worth of AstraZeneca stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. In AstraZeneca's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at AstraZeneca PLC's Growth Numbers

Over the past three years, AstraZeneca PLC has seen its earnings per share (EPS) grow by 286% per year. Its revenue is up 18% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings. .

Has AstraZeneca PLC Been A Good Investment?

AstraZeneca PLC has generated a total shareholder return of 14% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

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 AstraZeneca that investors should be aware of in a dynamic business environment.

Switching gears from AstraZeneca, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.