Here's Why BioNTech SE's (NASDAQ:BNTX) CEO May Not Expect A Pay Rise This Year

Key Insights

• BioNTech's Annual General Meeting to take place on 17th of May
• CEO Ugur Sahin's total compensation includes salary of €700.0k
• The total compensation is 80% less than the average for the industry
• BioNTech's three-year loss to shareholders was 52% while its EPS was down 54% over the past three years

The disappointing performance at BioNTech SE (NASDAQ:BNTX) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 17th of May. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for BioNTech

Comparing BioNTech SE's CEO Compensation With The Industry

According to our data, BioNTech SE has a market capitalization of US$22b, and paid its CEO total annual compensation worth €3.1m over the year to December 2023. We note that's a decrease of 52% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at €700k.

For comparison, other companies in the American Biotechs industry with market capitalizations above US$8.0b, reported a median total CEO compensation of €15m. This suggests that Ugur Sahin is paid below the industry median. Furthermore, Ugur Sahin directly owns US$3.8b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	€700k	€360k	23%
Other	€2.4m	€6.0m	77%
Total Compensation	€3.1m	€6.3m	100%

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Although there is a difference in how total compensation is set, BioNTech more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

BioNTech SE's Growth

Over the last three years, BioNTech SE has shrunk its earnings per share by 54% per year. Its revenue is down 78% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BioNTech SE Been A Good Investment?

With a total shareholder return of -52% over three years, BioNTech SE shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

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. That's why we did some digging and identified 1 warning sign for BioNTech that investors should think about before committing capital to this stock.

Switching gears from BioNTech, 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.