Shareholders Will Probably Hold Off On Increasing Kymera Therapeutics, Inc.'s (NASDAQ:KYMR) CEO Compensation For The Time Being

Key Insights

• Kymera Therapeutics to hold its Annual General Meeting on 18th of June
• CEO Nello Mainolfi's total compensation includes salary of US$640.0k
• The overall pay is 35% above the industry average
• Kymera Therapeutics' three-year loss to shareholders was 29% while its EPS was down 16% over the past three years

Shareholders of Kymera Therapeutics, Inc. (NASDAQ:KYMR) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 18th of June, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

See our latest analysis for Kymera Therapeutics

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

According to our data, Kymera Therapeutics, Inc. has a market capitalization of US$2.1b, and paid its CEO total annual compensation worth US$9.7m over the year to December 2023. Notably, that's an increase of 40% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$640k.

For comparison, other companies in the American Biotechs industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$7.2m. Hence, we can conclude that Nello Mainolfi is remunerated higher than the industry median. Moreover, Nello Mainolfi also holds US$21m worth of Kymera Therapeutics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$640k	US$600k	7%
Other	US$9.0m	US$6.3m	93%
Total Compensation	US$9.7m	US$6.9m	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. It's interesting to note that Kymera Therapeutics allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

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

Kymera Therapeutics, Inc. has reduced its earnings per share by 16% a year over the last three years. It achieved revenue growth of 70% over the last year.

Investors would be a bit wary of companies that have lower EPS 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Kymera Therapeutics, Inc. Been A Good Investment?

Since shareholders would have lost about 29% over three years, some Kymera 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 company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Kymera Therapeutics (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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.