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

Key Insights

• Rigel Pharmaceuticals will host its Annual General Meeting on 22nd of May
• Total pay for CEO Raul Rodriguez includes US$757.0k salary
• The overall pay is 38% below the industry average
• Rigel Pharmaceuticals' three-year loss to shareholders was 15% while its EPS grew by 95% over the past three years

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Shareholders may be wondering what CEO Raul Rodriguez plans to do to improve the less than great performance at Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) recently. 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 22nd of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Rigel Pharmaceuticals

How Does Total Compensation For Raul Rodriguez Compare With Other Companies In The Industry?

According to our data, Rigel Pharmaceuticals, Inc. has a market capitalization of US$327m, and paid its CEO total annual compensation worth US$3.0m over the year to December 2024. Notably, that's a decrease of 13% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$757k.

In comparison with other companies in the American Biotechs industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$4.9m. That is to say, Raul Rodriguez is paid under the industry median. What's more, Raul Rodriguez holds US$2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. According to our research, Rigel Pharmaceuticals has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Rigel Pharmaceuticals, Inc.'s Growth

Rigel Pharmaceuticals, Inc.'s earnings per share (EPS) grew 95% per year over the last three years. Its revenue is up 70% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Rigel Pharmaceuticals, Inc. Been A Good Investment?

Given the total shareholder loss of 15% over three years, many shareholders in Rigel Pharmaceuticals, 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 lacklustre share price returns is rather divergent to the robust growth in EPS, suggesting that there may be other factors weighing on it apart from fundamentals. Shareholders will get the chance to question the board on key concerns 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 1 warning sign for Rigel Pharmaceuticals that investors should think about before committing capital to this stock.

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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.