Shareholders May Be More Conservative With Travere Therapeutics, Inc.'s (NASDAQ:TVTX) CEO Compensation For Now

Key Insights

• Travere Therapeutics' Annual General Meeting to take place on 8th of May
• Total pay for CEO Eric Dube includes US$795.8k salary
• The overall pay is 145% above the industry average
• Over the past three years, Travere Therapeutics' EPS fell by 7.9% and over the past three years, the total loss to shareholders 75%

Shareholders of Travere Therapeutics, Inc. (NASDAQ:TVTX) will have been dismayed by the negative share price return over the last three years. 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 8th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

See our latest analysis for Travere Therapeutics

How Does Total Compensation For Eric Dube Compare With Other Companies In The Industry?

According to our data, Travere Therapeutics, Inc. has a market capitalization of US$421m, and paid its CEO total annual compensation worth US$7.6m over the year to December 2023. We note that's an increase of 32% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$796k.

On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$3.1m. Hence, we can conclude that Eric Dube is remunerated higher than the industry median. Moreover, Eric Dube also holds US$655k worth of Travere Therapeutics stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	US$796k	US$747k	11%
Other	US$6.8m	US$5.0m	89%
Total Compensation	US$7.6m	US$5.8m	100%

On an industry level, roughly 24% of total compensation represents salary and 76% is other remuneration. In Travere 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.

Travere Therapeutics, Inc.'s Growth

Over the last three years, Travere Therapeutics, Inc. has shrunk its earnings per share by 7.9% per year. It achieved revenue growth of 33% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Travere Therapeutics, Inc. Been A Good Investment?

The return of -75% over three years would not have pleased Travere Therapeutics, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In 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 is in line with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Travere Therapeutics that investors should look into moving forward.

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.