It's Unlikely That Checkpoint Therapeutics, Inc.'s (NASDAQ:CKPT) CEO Will See A Huge Pay Rise This Year

In the past three years, the share price of Checkpoint Therapeutics, Inc. (NASDAQ:CKPT) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 09 June 2021. 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.

View our latest analysis for Checkpoint Therapeutics

Comparing Checkpoint Therapeutics, Inc.'s CEO Compensation With the industry

According to our data, Checkpoint Therapeutics, Inc. has a market capitalization of US$205m, and paid its CEO total annual compensation worth US$2.3m over the year to December 2020. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$515k.

On comparing similar companies from the same industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$1.7m. Accordingly, our analysis reveals that Checkpoint Therapeutics, Inc. pays James Oliviero north of the industry median. What's more, James Oliviero holds US$8.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$515k	US$480k	23%
Other	US$1.8m	US$1.8m	77%
Total Compensation	US$2.3m	US$2.3m	100%

Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. According to our research, Checkpoint Therapeutics has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Checkpoint Therapeutics, Inc.'s Growth Numbers

Checkpoint Therapeutics, Inc.'s earnings per share (EPS) grew 39% per year over the last three years. It saw its revenue drop 93% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Checkpoint Therapeutics, Inc. Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Checkpoint Therapeutics, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too 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. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Checkpoint Therapeutics you should be aware of, and 1 of them is potentially serious.

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. 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.
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