Shareholders May Be More Conservative With AnaptysBio, Inc.'s (NASDAQ:ANAB) CEO Compensation For Now

Key Insights

• AnaptysBio to hold its Annual General Meeting on 17th of June
• Salary of US$685.4k is part of CEO Dan Faga's total remuneration
• Total compensation is 121% above industry average
• Over the past three years, AnaptysBio's EPS fell by 14% and over the past three years, the total shareholder return was 15%

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CEO Dan Faga has done a decent job of delivering relatively good performance at AnaptysBio, Inc. (NASDAQ:ANAB) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for AnaptysBio

Comparing AnaptysBio, Inc.'s CEO Compensation With The Industry

Our data indicates that AnaptysBio, Inc. has a market capitalization of US$681m, and total annual CEO compensation was reported as US$14m for the year to December 2024. We note that's an increase of 83% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$685k.

On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$6.2m. Hence, we can conclude that Dan Faga is remunerated higher than the industry median. Moreover, Dan Faga also holds US$10m worth of AnaptysBio stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. It's interesting to note that AnaptysBio allocates a smaller portion of compensation to salary in comparison 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.

AnaptysBio, Inc.'s Growth

Over the last three years, AnaptysBio, Inc. has shrunk its earnings per share by 14% per year. It achieved revenue growth of 387% over the last year.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has AnaptysBio, Inc. Been A Good Investment?

AnaptysBio, Inc. has served shareholders reasonably well, with a total return of 15% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which can't be ignored) in AnaptysBio we think you should know about.

Switching gears from AnaptysBio, 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.