Yahoo Finance It's Probably Less Likely That G1 Therapeutics, Inc.'s (NASDAQ:GTHX) CEO Will See A Huge Pay Rise This Year
Key Insights
G1 Therapeutics will host its Annual General Meeting on 13th of June
Total pay for CEO Jack Bailey includes US$795.0k salary
The total compensation is similar to the average for the industry
Over the past three years, G1 Therapeutics' EPS grew by 30% and over the past three years, the total loss to shareholders 86%
The underwhelming share price performance of G1 Therapeutics, Inc. (NASDAQ:GTHX) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 13th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for G1 Therapeutics
How Does Total Compensation For Jack Bailey Compare With Other Companies In The Industry?
At the time of writing, our data shows that G1 Therapeutics, Inc. has a market capitalization of US$168m, and reported total annual CEO compensation of US$3.3m for the year to December 2023. That's a fairly small increase of 7.8% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$795k.
For comparison, other companies in the American Biotechs industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$2.6m. From this we gather that Jack Bailey is paid around the median for CEOs in the industry. Furthermore, Jack Bailey directly owns US$559k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$795k | US$764k | 24% |
Other | US$2.5m | US$2.3m | 76% |
Total Compensation | US$3.3m | US$3.0m | 100% |
On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Our data reveals that G1 Therapeutics allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at G1 Therapeutics, Inc.'s Growth Numbers
Over the past three years, G1 Therapeutics, Inc. has seen its earnings per share (EPS) grow by 30% per year. In the last year, its revenue is up 47%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 G1 Therapeutics, Inc. Been A Good Investment?
With a total shareholder return of -86% over three years, G1 Therapeutics, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. 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. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still 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've identified 2 warning signs for G1 Therapeutics that investors should be aware of in a dynamic business environment.
Switching gears from G1 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.
