We Think Some Shareholders May Hesitate To Increase Oncternal Therapeutics, Inc.'s (NASDAQ:ONCT) CEO Compensation

Key Insights

• Oncternal Therapeutics to hold its Annual General Meeting on 20th of June
• CEO Jim Breitmeyer's total compensation includes salary of US$609.4k
• Total compensation is 44% above industry average
• Oncternal Therapeutics' EPS declined by 5.0% over the past three years while total shareholder loss over the past three years was 92%

In the past three years, the share price of Oncternal Therapeutics, Inc. (NASDAQ:ONCT) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 20th of June and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

See our latest analysis for Oncternal Therapeutics

How Does Total Compensation For Jim Breitmeyer Compare With Other Companies In The Industry?

At the time of writing, our data shows that Oncternal Therapeutics, Inc. has a market capitalization of US$25m, and reported total annual CEO compensation of US$1.6m for the year to December 2023. We note that's a decrease of 34% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$609k.

On comparing similar-sized companies in the American Biotechs industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.1m. This suggests that Jim Breitmeyer is paid more than the median for the industry. What's more, Jim Breitmeyer holds US$272k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$609k	US$580k	38%
Other	US$1.0m	US$1.9m	62%
Total Compensation	US$1.6m	US$2.4m	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 Oncternal Therapeutics pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Oncternal Therapeutics, Inc.'s Growth

Over the last three years, Oncternal Therapeutics, Inc. has shrunk its earnings per share by 5.0% per year. Its revenue is up 22% 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. 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 Oncternal Therapeutics, Inc. Been A Good Investment?

The return of -92% over three years would not have pleased Oncternal Therapeutics, Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. 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.

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 Oncternal Therapeutics (of which 1 is concerning!) 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.

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