Increases to CEO Compensation Might Be Put On Hold For Now at Ikena Oncology, Inc. (NASDAQ:IKNA)

Key Insights

• Ikena Oncology to hold its Annual General Meeting on 7th of June
• Salary of US$569.0k is part of CEO Mark Manfredi's total remuneration
• The total compensation is 44% higher than the average for the industry
• Ikena Oncology's EPS grew by 75% over the past three years while total shareholder loss over the past three years was 89%

In the past three years, the share price of Ikena Oncology, Inc. (NASDAQ:IKNA) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 7th of June could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Ikena Oncology

Comparing Ikena Oncology, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Ikena Oncology, Inc. has a market capitalization of US$86m, and reported total annual CEO compensation of US$1.2m for the year to December 2023. That's a notable decrease of 50% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$569k.

In comparison with other companies in the American Pharmaceuticals industry with market capitalizations under US$200m, the reported median total CEO compensation was US$861k. This suggests that Mark Manfredi is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	US$569k	US$546k	46%
Other	US$672k	US$1.9m	54%
Total Compensation	US$1.2m	US$2.5m	100%

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. Ikena Oncology is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Ikena Oncology, Inc.'s Growth Numbers

Ikena Oncology, Inc. has seen its earnings per share (EPS) increase by 75% a year over the past three years. Its revenue is down 78% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ikena Oncology, Inc. Been A Good Investment?

Few Ikena Oncology, Inc. shareholders would feel satisfied with the return of -89% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. 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. We identified 6 warning signs for Ikena Oncology (1 is a bit concerning!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.