We Think The Compensation For Sarepta Therapeutics, Inc.'s (NASDAQ:SRPT) CEO Looks About Right

Key Insights

• Sarepta Therapeutics to hold its Annual General Meeting on 5th of June
• CEO Doug Ingram's total compensation includes salary of US$846.9k
• Total compensation is 81% below industry average
• Over the past three years, Sarepta Therapeutics' EPS grew by 60% and over the past three years, the total loss to shareholders 49%

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The performance at Sarepta Therapeutics, Inc. (NASDAQ:SRPT) has been rather lacklustre of late and shareholders may be wondering what CEO Doug Ingram is planning to do about 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 5th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Sarepta Therapeutics

How Does Total Compensation For Doug Ingram Compare With Other Companies In The Industry?

According to our data, Sarepta Therapeutics, Inc. has a market capitalization of US$3.8b, and paid its CEO total annual compensation worth US$2.0m over the year to December 2024. We note that's an increase of 19% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$847k.

On comparing similar companies from the American Biotechs industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$11m. In other words, Sarepta Therapeutics pays its CEO lower than the industry median. What's more, Doug Ingram holds US$15m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that Sarepta Therapeutics pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Sarepta Therapeutics, Inc.'s Growth

Sarepta Therapeutics, Inc.'s earnings per share (EPS) grew 60% per year over the last three years. It achieved revenue growth of 59% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing 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 Sarepta Therapeutics, Inc. Been A Good Investment?

With a total shareholder return of -49% over three years, Sarepta Therapeutics, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Sarepta Therapeutics (1 is a bit unpleasant!) that you should be aware of before investing here.

Switching gears from Sarepta Therapeutics, 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.