Key Insights

• Repligen's Annual General Meeting to take place on 16th of May
• Salary of US$880.0k is part of CEO Tony Hunt's total remuneration
• Total compensation is 35% above industry average
• Repligen's three-year loss to shareholders was 2.8% while its EPS was down 44% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Repligen Corporation (NASDAQ:RGEN) recently. At the upcoming AGM on 16th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Comparing Repligen Corporation's CEO Compensation With The Industry

According to our data, Repligen Corporation has a market capitalization of US$9.2b, and paid its CEO total annual compensation worth US$7.9m over the year to December 2023. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$880k.

In comparison with other companies in the American Life Sciences industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$5.9m. Accordingly, our analysis reveals that Repligen Corporation pays Tony Hunt north of the industry median. What's more, Tony Hunt holds US$16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. Repligen pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Repligen Corporation's Growth Numbers

Over the last three years, Repligen Corporation has shrunk its earnings per share by 44% per year. In the last year, its revenue is down 22%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Repligen Corporation Been A Good Investment?

With a three year total loss of 2.8% for the shareholders, Repligen Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Repligen that investors should look into moving forward.

Switching gears from Repligen, 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.