Key Insights

• Ensysce Biosciences to hold its Annual General Meeting on 21st of November
• CEO D. Kirkpatrick's total compensation includes salary of US$404.9k
• The total compensation is 58% less than the average for the industry
• Ensysce Biosciences' three-year loss to shareholders was 100% while its EPS grew by 72% over the past three years

Shareholders may be wondering what CEO D. Kirkpatrick plans to do to improve the less than great performance at Ensysce Biosciences, Inc. (NASDAQ:ENSC) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 21st of November. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

Comparing Ensysce Biosciences, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Ensysce Biosciences, Inc. has a market capitalization of US$9.4m, and reported total annual CEO compensation of US$509k for the year to December 2023. We note that's a decrease of 18% compared to last year. We note that the salary portion, which stands at US$404.9k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the American Biotechs industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.2m. In other words, Ensysce Biosciences pays its CEO lower than the industry median.

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. Ensysce Biosciences pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Ensysce Biosciences, Inc.'s Growth Numbers

Ensysce Biosciences, Inc. has seen its earnings per share (EPS) increase by 72% a year over the past three years. Its revenue is down 52% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 Ensysce Biosciences, Inc. Been A Good Investment?

With a total shareholder return of -100% over three years, Ensysce Biosciences, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Ensysce Biosciences (of which 3 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: Ensysce Biosciences is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.