Key Insights

• Ikena Oncology will host its Annual General Meeting on 7th of June
• CEO Mark Manfredi's total compensation includes salary of US$569.0k
• The total compensation is 44% higher than the average for the industry
• Over the past three years, Ikena Oncology's EPS grew by 75% and over the past three years, the total loss to shareholders 89%

The underwhelming share price performance of Ikena Oncology, Inc. (NASDAQ:IKNA) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 7th 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. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Comparing Ikena Oncology, Inc.'s CEO Compensation With The Industry

According to our data, Ikena Oncology, Inc. has a market capitalization of US$86m, and paid its CEO total annual compensation worth US$1.2m over the year to December 2023. That's a notable decrease of 50% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$569k.

On comparing similar-sized companies in the American Pharmaceuticals industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$861k. Hence, we can conclude that Mark Manfredi is remunerated higher than the industry median.

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. According to our research, Ikena Oncology has allocated a higher percentage of pay to salary in comparison to the wider 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 Ikena Oncology, Inc.'s Growth Numbers

Ikena Oncology, Inc.'s earnings per share (EPS) grew 75% per year over the last three years. Its revenue is down 78% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Ikena Oncology, Inc. Been A Good Investment?

With a total shareholder return of -89% over three years, Ikena Oncology, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

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. At 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 will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 6 warning signs (and 1 which is a bit unpleasant) in Ikena Oncology we think you should know about.

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.