We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Akoya Biosciences, Inc.'s (NASDAQ:AKYA) CEO For Now

Key Insights

• Akoya Biosciences' Annual General Meeting to take place on 4th of June
• CEO Brian McKelligon's total compensation includes salary of US$542.5k
• The overall pay is 99% above the industry average
• Akoya Biosciences' three-year loss to shareholders was 89% while its EPS grew by 56% over the past three years

The underwhelming share price performance of Akoya Biosciences, Inc. (NASDAQ:AKYA) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 4th of June could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Akoya Biosciences

How Does Total Compensation For Brian McKelligon Compare With Other Companies In The Industry?

Our data indicates that Akoya Biosciences, Inc. has a market capitalization of US$97m, and total annual CEO compensation was reported as US$2.9m for the year to December 2023. That's a slight decrease of 4.3% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$543k.

In comparison with other companies in the American Life Sciences industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.5m. Hence, we can conclude that Brian McKelligon is remunerated higher than the industry median. What's more, Brian McKelligon holds US$86k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$543k	US$518k	19%
Other	US$2.4m	US$2.5m	81%
Total Compensation	US$2.9m	US$3.0m	100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. Akoya Biosciences is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Akoya Biosciences, Inc.'s Growth Numbers

Akoya Biosciences, Inc.'s earnings per share (EPS) grew 56% per year over the last three years. It achieved revenue growth of 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Akoya Biosciences, Inc. Been A Good Investment?

The return of -89% over three years would not have pleased Akoya Biosciences, Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 4 warning signs for Akoya Biosciences that investors should look into moving forward.

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.