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

Key Insights

• Nurix Therapeutics' Annual General Meeting to take place on 19th of May
• CEO Arthur Sands' total compensation includes salary of US$613.1k
• The total compensation is similar to the average for the industry
• Nurix Therapeutics' three-year loss to shareholders was 2.1% while its EPS grew by 8.6% over the past three years

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In the past three years, the share price of Nurix Therapeutics, Inc. (NASDAQ:NRIX) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 19th of May 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. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Nurix Therapeutics

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

According to our data, Nurix Therapeutics, Inc. has a market capitalization of US$724m, and paid its CEO total annual compensation worth US$5.8m over the year to November 2024. That's a notable increase of 33% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$613k.

On comparing similar companies from the American Biotechs industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$6.9m. This suggests that Nurix Therapeutics remunerates its CEO largely in line with the industry average. Furthermore, Arthur Sands directly owns US$2.9m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. In Nurix Therapeutics' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Nurix Therapeutics, Inc.'s Growth

Over the past three years, Nurix Therapeutics, Inc. has seen its earnings per share (EPS) grow by 8.6% per year. In the last year, its revenue is down 30%.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Nurix Therapeutics, Inc. Been A Good Investment?

Given the total shareholder loss of 2.1% over three years, many shareholders in Nurix Therapeutics, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Nurix Therapeutics that you should be aware of before investing.

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.