Key Insights

• Oncternal Therapeutics' Annual General Meeting to take place on 20th of June
• Salary of US$609.4k is part of CEO Jim Breitmeyer's total remuneration
• The overall pay is 44% above the industry average
• Over the past three years, Oncternal Therapeutics' EPS fell by 5.0% and over the past three years, the total loss to shareholders 92%

Shareholders of Oncternal Therapeutics, Inc. (NASDAQ:ONCT) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 20th of June, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

How Does Total Compensation For Jim Breitmeyer Compare With Other Companies In The Industry?

According to our data, Oncternal Therapeutics, Inc. has a market capitalization of US$25m, and paid its CEO total annual compensation worth US$1.6m over the year to December 2023. We note that's a decrease of 34% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$609k.

In comparison with other companies in the American Biotechs industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.1m. Accordingly, our analysis reveals that Oncternal Therapeutics, Inc. pays Jim Breitmeyer north of the industry median. Moreover, Jim Breitmeyer also holds US$272k worth of Oncternal Therapeutics stock directly under their own name.

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. Oncternal Therapeutics pays out 38% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Oncternal Therapeutics, Inc.'s Growth Numbers

Over the last three years, Oncternal Therapeutics, Inc. has shrunk its earnings per share by 5.0% per year. In the last year, its revenue is up 22%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Oncternal Therapeutics, Inc. Been A Good Investment?

The return of -92% over three years would not have pleased Oncternal Therapeutics, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. Shareholders will get the chance at the upcoming AGM 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.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which is significant) in Oncternal Therapeutics 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.

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