Here's Why We Think Capricor Therapeutics, Inc.'s (NASDAQ:CAPR) CEO Compensation Looks Fair

Key Insights

• Capricor Therapeutics to hold its Annual General Meeting on 22nd of May
• CEO Linda Marbán's total compensation includes salary of US$229.3k
• Total compensation is 68% below industry average
• Over the past three years, Capricor Therapeutics' EPS fell by 2.7% and over the past three years, the total shareholder return was 181%

Our free stock report includes 2 warning signs investors should be aware of before investing in Capricor Therapeutics. Read for free now.

Shareholders may be wondering what CEO Linda Marbán plans to do to improve the less than great performance at Capricor Therapeutics, Inc. (NASDAQ:CAPR) recently. At the next AGM coming up on 22nd of May, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Capricor Therapeutics

Comparing Capricor Therapeutics, Inc.'s CEO Compensation With The Industry

According to our data, Capricor Therapeutics, Inc. has a market capitalization of US$350m, and paid its CEO total annual compensation worth US$1.5m over the year to December 2024. Notably, that's an increase of 99% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$229k.

For comparison, other companies in the American Biotechs industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$4.9m. This suggests that Linda Marbán is paid below the industry median. Moreover, Linda Marbán also holds US$2.0m worth of Capricor Therapeutics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$229k	US$221k	15%
Other	US$1.3m	US$554k	85%
Total Compensation	US$1.5m	US$774k	100%

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. In Capricor Therapeutics' 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.

Capricor Therapeutics, Inc.'s Growth

Over the last three years, Capricor Therapeutics, Inc. has shrunk its earnings per share by 2.7% per year. Its revenue is down 36% over the previous year.

Its a bit disappointing to see that the company has failed to grow its EPS. 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 Capricor Therapeutics, Inc. Been A Good Investment?

Boasting a total shareholder return of 181% over three years, Capricor Therapeutics, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us wonder if these strong returns can continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

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 2 warning signs for Capricor Therapeutics that investors should look into moving forward.

Important note: Capricor Therapeutics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.