Stock Analysis

Shareholders May Find It Hard To Justify Increasing Soligenix, Inc.'s (NASDAQ:SNGX) CEO Compensation For Now

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NasdaqCM:SNGX
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Shareholders of Soligenix, Inc. (NASDAQ:SNGX) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 23 September 2021. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Soligenix

How Does Total Compensation For Christopher Schaber Compare With Other Companies In The Industry?

Our data indicates that Soligenix, Inc. has a market capitalization of US$43m, and total annual CEO compensation was reported as US$944k for the year to December 2020. That's a notable increase of 37% on last year. In particular, the salary of US$475.4k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.2m. So it looks like Soligenix compensates Christopher Schaber in line with the median for the industry. What's more, Christopher Schaber holds US$56k worth of shares in the company in their own name.

Component20202019Proportion (2020)
Salary US$475k US$466k 50%
Other US$468k US$222k 50%
Total CompensationUS$944k US$688k100%

Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. It's interesting to note that Soligenix pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
NasdaqCM:SNGX CEO Compensation September 17th 2021

Soligenix, Inc.'s Growth

Soligenix, Inc. has seen its earnings per share (EPS) increase by 16% a year over the past three years. It saw its revenue drop 62% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Soligenix, Inc. Been A Good Investment?

With a total shareholder return of -32% over three years, Soligenix, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid 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. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 4 warning signs for Soligenix that investors should think about before committing capital to this 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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