Here's Why Celldex Therapeutics, Inc.'s (NASDAQ:CLDX) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Celldex Therapeutics to hold its Annual General Meeting on 13th of June
• Total pay for CEO Anthony Marucci includes US$721.2k salary
• The total compensation is similar to the average for the industry
• Celldex Therapeutics' EPS declined by 20% over the past three years while total shareholder return over the past three years was 15%

CEO Anthony Marucci has done a decent job of delivering relatively good performance at Celldex Therapeutics, Inc. (NASDAQ:CLDX) recently. As shareholders go into the upcoming AGM on 13th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Celldex Therapeutics

How Does Total Compensation For Anthony Marucci Compare With Other Companies In The Industry?

At the time of writing, our data shows that Celldex Therapeutics, Inc. has a market capitalization of US$2.2b, and reported total annual CEO compensation of US$8.4m for the year to December 2023. Notably, that's an increase of 55% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$721k.

In comparison with other companies in the American Biotechs industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$7.2m. So it looks like Celldex Therapeutics compensates Anthony Marucci in line with the median for the industry. What's more, Anthony Marucci holds US$1.0m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$721k	US$693k	9%
Other	US$7.6m	US$4.7m	91%
Total Compensation	US$8.4m	US$5.4m	100%

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. Celldex Therapeutics sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Celldex Therapeutics, Inc.'s Growth

Over the last three years, Celldex Therapeutics, Inc. has shrunk its earnings per share by 20% per year. In the last year, its revenue is up 93%.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Celldex Therapeutics, Inc. Been A Good Investment?

Celldex Therapeutics, Inc. has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Celldex Therapeutics that investors should be aware of in a dynamic business environment.

Important note: Celldex 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.

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

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.