Here's Why Shareholders Should Examine Milestone Pharmaceuticals Inc.'s (NASDAQ:MIST) CEO Compensation Package More Closely

Key Insights

• Milestone Pharmaceuticals' Annual General Meeting to take place on 13th of June
• CEO Joe Oliveto's total compensation includes salary of US$601.5k
• The total compensation is 130% higher than the average for the industry
• Milestone Pharmaceuticals' three-year loss to shareholders was 73% while its EPS was down 9.8% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Milestone Pharmaceuticals Inc. (NASDAQ:MIST) recently. At the upcoming AGM on 13th of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Milestone Pharmaceuticals

How Does Total Compensation For Joe Oliveto Compare With Other Companies In The Industry?

According to our data, Milestone Pharmaceuticals Inc. has a market capitalization of US$98m, and paid its CEO total annual compensation worth US$2.0m over the year to December 2023. We note that's a decrease of 33% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$602k.

In comparison with other companies in the American Pharmaceuticals industry with market capitalizations under US$200m, the reported median total CEO compensation was US$860k. Hence, we can conclude that Joe Oliveto is remunerated higher than the industry median. What's more, Joe Oliveto holds US$422k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$602k	US$584k	30%
Other	US$1.4m	US$2.4m	70%
Total Compensation	US$2.0m	US$3.0m	100%

Talking in terms of the industry, salary represented approximately 29% of total compensation out of all the companies we analyzed, while other remuneration made up 71% of the pie. Although there is a difference in how total compensation is set, Milestone Pharmaceuticals more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Milestone Pharmaceuticals Inc.'s Growth Numbers

Milestone Pharmaceuticals Inc. has reduced its earnings per share by 9.8% a year over the last three years. In the last year, the company lost virtually all of its revenue.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Milestone Pharmaceuticals Inc. Been A Good Investment?

With a total shareholder return of -73% over three years, Milestone Pharmaceuticals Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. 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 Milestone Pharmaceuticals (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Milestone Pharmaceuticals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.