Stock Analysis

Why Soligenix's (NASDAQ:SNGX) CEO Pay Matters

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This article will reflect on the compensation paid to Christopher Schaber who has served as CEO of Soligenix, Inc. (NASDAQ:SNGX) since 2006. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Soligenix

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

At the time of writing, our data shows that Soligenix, Inc. has a market capitalization of US$66m, and reported total annual CEO compensation of US$688k for the year to December 2019. Notably, that's an increase of 11% over the year before. In particular, the salary of US$466.1k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.0m. This suggests that Christopher Schaber is paid below the industry median. Moreover, Christopher Schaber also holds US$128k worth of Soligenix stock directly under their own name.

Component20192018Proportion (2019)
Salary US$466k US$453k 68%
Other US$222k US$166k 32%
Total CompensationUS$688k US$619k100%

Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. It's interesting to note that Soligenix pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

NasdaqCM:SNGX CEO Compensation November 20th 2020

A Look at Soligenix, Inc.'s Growth Numbers

Soligenix, Inc.'s earnings per share (EPS) grew 24% per year over the last three years. In the last year, its revenue is down 45%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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?

Soligenix, Inc. has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, Christopher is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. At the same time, EPS growth has been exceptional over the past three years. However, shareholder returns have failed to show the same level of growth. Shareholder returns could be better but we're pleased with the positive EPS growth. So considering these factors, we think Christopher is modestly compensated.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 4 warning signs for Soligenix that investors should be aware of in a dynamic business environment.

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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