Key Insights

• Kronos Bio to hold its Annual General Meeting on 25th of June
• Total pay for CEO Norbert Bischofberger includes US$580.0k salary
• The total compensation is 55% higher than the average for the industry
• Over the past three years, Kronos Bio's EPS grew by 19% and over the past three years, the total loss to shareholders 96%

The underwhelming share price performance of Kronos Bio, Inc. (NASDAQ:KRON) 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. The AGM coming up on the 25th of June could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Comparing Kronos Bio, Inc.'s CEO Compensation With The Industry

According to our data, Kronos Bio, Inc. has a market capitalization of US$62m, and paid its CEO total annual compensation worth US$1.8m over the year to December 2023. We note that's a decrease of 37% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$580k.

For comparison, other companies in the American Biotechs industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.1m. Accordingly, our analysis reveals that Kronos Bio, Inc. pays Norbert Bischofberger north of the industry median. Furthermore, Norbert Bischofberger directly owns US$11m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. Kronos Bio is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Kronos Bio, Inc.'s Growth Numbers

Over the past three years, Kronos Bio, Inc. has seen its earnings per share (EPS) grow by 19% per year. It achieved revenue growth of 521% over the last year.

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Kronos Bio, Inc. Been A Good Investment?

The return of -96% over three years would not have pleased Kronos Bio, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 4 warning signs for Kronos Bio that you should be aware of before investing.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com