It's Probably Less Likely That Aytu BioPharma, Inc.'s (NASDAQ:AYTU) CEO Will See A Huge Pay Rise This Year

Key Insights

• Aytu BioPharma will host its Annual General Meeting on 26th of June
• Salary of US$590.0k is part of CEO Josh Disbrow's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Aytu BioPharma's EPS grew by 71% and over the past three years, the total loss to shareholders 97%

Shareholders of Aytu BioPharma, Inc. (NASDAQ:AYTU) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 26th 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 think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Aytu BioPharma

How Does Total Compensation For Josh Disbrow Compare With Other Companies In The Industry?

Our data indicates that Aytu BioPharma, Inc. has a market capitalization of US$16m, and total annual CEO compensation was reported as US$708k for the year to June 2023. Notably, that's an increase of 20% over the year before. We note that the salary portion, which stands at US$590.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the American Pharmaceuticals industry with market capitalizations below US$200m, reported a median total CEO compensation of US$865k. From this we gather that Josh Disbrow is paid around the median for CEOs in the industry. Moreover, Josh Disbrow also holds US$204k worth of Aytu BioPharma stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	US$590k	US$590k	83%
Other	US$118k	-	17%
Total Compensation	US$708k	US$590k	100%

On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. It's interesting to note that Aytu BioPharma pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Aytu BioPharma, Inc.'s Growth Numbers

Aytu BioPharma, Inc.'s earnings per share (EPS) grew 71% per year over the last three years. It saw its revenue drop 9.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Aytu BioPharma, Inc. Been A Good Investment?

With a total shareholder return of -97% over three years, Aytu BioPharma, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Aytu BioPharma that investors should think about before committing capital to this stock.

Switching gears from Aytu BioPharma, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com