Shareholders May Not Be So Generous With Tango Therapeutics, Inc.'s (NASDAQ:TNGX) CEO Compensation And Here's Why

Key Insights

• Tango Therapeutics will host its Annual General Meeting on 5th of June
• Salary of US$626.0k is part of CEO Barbara Weber's total remuneration
• Total compensation is similar to the industry average
• Tango Therapeutics' three-year loss to shareholders was 39% while its EPS was down 1.3% over the past three years

The underwhelming share price performance of Tango Therapeutics, Inc. (NASDAQ:TNGX) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 5th of June and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Tango Therapeutics

How Does Total Compensation For Barbara Weber Compare With Other Companies In The Industry?

According to our data, Tango Therapeutics, Inc. has a market capitalization of US$732m, and paid its CEO total annual compensation worth US$3.4m over the year to December 2023. We note that's a decrease of 28% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$626k.

On comparing similar companies from the American Biotechs industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$4.3m. This suggests that Tango Therapeutics remunerates its CEO largely in line with the industry average. Moreover, Barbara Weber also holds US$9.4m worth of Tango Therapeutics 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$626k	US$575k	18%
Other	US$2.8m	US$4.1m	82%
Total Compensation	US$3.4m	US$4.7m	100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. In Tango Therapeutics' case, non-salary compensation represents a greater slice of total remuneration, 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.

A Look at Tango Therapeutics, Inc.'s Growth Numbers

Over the last three years, Tango Therapeutics, Inc. has shrunk its earnings per share by 1.3% per year. It achieved revenue growth of 50% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Tango Therapeutics, Inc. Been A Good Investment?

Few Tango Therapeutics, Inc. shareholders would feel satisfied with the return of -39% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Tango Therapeutics (1 is concerning!) that you should be aware of before investing here.

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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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.