It's Unlikely That Shareholders Will Increase INmune Bio, Inc.'s (NASDAQ:INMB) Compensation By Much This Year

Key Insights

• INmune Bio to hold its Annual General Meeting on 19th of July
• CEO RJ Tesi's total compensation includes salary of US$500.5k
• The total compensation is 39% less than the average for the industry
• Over the past three years, INmune Bio's EPS fell by 4.8% and over the past three years, the total loss to shareholders 59%

The underwhelming performance at INmune Bio, Inc. (NASDAQ:INMB) recently has probably not pleased shareholders. At the upcoming AGM on 19th of July, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for INmune Bio

Comparing INmune Bio, Inc.'s CEO Compensation With The Industry

Our data indicates that INmune Bio, Inc. has a market capitalization of US$166m, and total annual CEO compensation was reported as US$1.7m for the year to December 2023. We note that's an increase of 17% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$501k.

On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$2.8m. Accordingly, INmune Bio pays its CEO under the industry median. Furthermore, RJ Tesi directly owns US$14m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$501k	US$455k	30%
Other	US$1.2m	US$990k	70%
Total Compensation	US$1.7m	US$1.4m	100%

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. INmune Bio pays out 30% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at INmune Bio, Inc.'s Growth Numbers

Over the last three years, INmune Bio, Inc. has shrunk its earnings per share by 4.8% per year. Its revenue is down 47% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. 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 INmune Bio, Inc. Been A Good Investment?

With a total shareholder return of -59% over three years, INmune Bio, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for INmune Bio (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: INmune Bio 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.

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