Regeneron Pharmaceuticals, Inc.'s (NASDAQ:REGN) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Regeneron Pharmaceuticals' Annual General Meeting to take place on 14th of June
• Salary of US$1.88m is part of CEO Leonard Schleifer's total remuneration
• The total compensation is 51% less than the average for the industry
• Regeneron Pharmaceuticals' EPS declined by 1.7% over the past three years while total shareholder return over the past three years was 91%

Performance at Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) has been rather uninspiring recently and shareholders may be wondering how CEO Leonard Schleifer plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 14th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Regeneron Pharmaceuticals

How Does Total Compensation For Leonard Schleifer Compare With Other Companies In The Industry?

According to our data, Regeneron Pharmaceuticals, Inc. has a market capitalization of US$108b, and paid its CEO total annual compensation worth US$8.2m over the year to December 2023. Notably, that's an increase of 17% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.9m.

On comparing similar companies in the American Biotechs industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$17m. In other words, Regeneron Pharmaceuticals pays its CEO lower than the industry median. What's more, Leonard Schleifer holds US$2.4b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$1.9m	US$1.8m	23%
Other	US$6.3m	US$5.2m	77%
Total Compensation	US$8.2m	US$7.0m	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. Our data reveals that Regeneron Pharmaceuticals allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Regeneron Pharmaceuticals, Inc.'s Growth

Regeneron Pharmaceuticals, Inc. has reduced its earnings per share by 1.7% a year over the last three years. In the last year, its revenue is up 5.9%.

The lack of EPS growth is certainly uninspiring. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Regeneron Pharmaceuticals, Inc. Been A Good Investment?

We think that the total shareholder return of 91%, over three years, would leave most Regeneron Pharmaceuticals, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.

Shareholders may want to check for free if Regeneron Pharmaceuticals insiders are buying or selling shares.

Switching gears from Regeneron 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.

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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.