Shareholders Will Probably Not Have Any Issues With Alpha Teknova, Inc.'s (NASDAQ:TKNO) CEO Compensation

Key Insights

• Alpha Teknova will host its Annual General Meeting on 17th of June
• CEO Stephen Gunstream's total compensation includes salary of US$569.2k
• Total compensation is 84% below industry average
• Alpha Teknova's EPS grew by 17% over the past three years while total shareholder loss over the past three years was 25%

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The performance at Alpha Teknova, Inc. (NASDAQ:TKNO) has been rather lacklustre of late and shareholders may be wondering what CEO Stephen Gunstream is planning to do about this. At the next AGM coming up on 17th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. 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. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Alpha Teknova

How Does Total Compensation For Stephen Gunstream Compare With Other Companies In The Industry?

According to our data, Alpha Teknova, Inc. has a market capitalization of US$317m, and paid its CEO total annual compensation worth US$932k over the year to December 2024. That's a notable decrease of 32% on last year. In particular, the salary of US$569.2k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the American Life Sciences industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$5.8m. That is to say, Stephen Gunstream is paid under the industry median. Furthermore, Stephen Gunstream directly owns US$1.2m worth of shares in the company.

Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. It's interesting to note that Alpha Teknova pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Alpha Teknova, Inc.'s Growth

Alpha Teknova, Inc.'s earnings per share (EPS) grew 17% per year over the last three years. It achieved revenue growth of 3.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Alpha Teknova, Inc. Been A Good Investment?

Given the total shareholder loss of 25% over three years, many shareholders in Alpha Teknova, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. 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 compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Alpha Teknova (1 is concerning!) that you should be aware of before investing here.

Important note: Alpha Teknova 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.