Shareholders May Be More Conservative With Theravance Biopharma, Inc.'s (NASDAQ:TBPH) CEO Compensation For Now

Key Insights

• Theravance Biopharma's Annual General Meeting to take place on 8th of May
• Salary of US$1.05m is part of CEO Rick Winningham's total remuneration
• The overall pay is 30% above the industry average
• Theravance Biopharma's EPS grew by 56% over the past three years while total shareholder loss over the past three years was 55%

In the past three years, the share price of Theravance Biopharma, Inc. (NASDAQ:TBPH) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 8th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Theravance Biopharma

Comparing Theravance Biopharma, Inc.'s CEO Compensation With The Industry

According to our data, Theravance Biopharma, Inc. has a market capitalization of US$410m, and paid its CEO total annual compensation worth US$4.3m over the year to December 2023. Notably, that's a decrease of 31% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

On comparing similar companies from the American Pharmaceuticals industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$3.3m. This suggests that Rick Winningham is paid more than the median for the industry. Moreover, Rick Winningham also holds US$17m worth of Theravance Biopharma stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$1.0m	US$1.0m	24%
Other	US$3.3m	US$5.2m	76%
Total Compensation	US$4.3m	US$6.3m	100%

On an industry level, roughly 28% of total compensation represents salary and 72% is other remuneration. It's interesting to note that Theravance Biopharma allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Theravance Biopharma, Inc.'s Growth

Theravance Biopharma, Inc. has seen its earnings per share (EPS) increase by 56% a year over the past three years. Its revenue is up 12% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Theravance Biopharma, Inc. Been A Good Investment?

With a total shareholder return of -55% over three years, Theravance Biopharma, 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 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. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

So you may want to check if insiders are buying Theravance Biopharma shares with their own money (free access).

Important note: Theravance Biopharma is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.