The underwhelming share price performance of Selecta Biosciences, Inc. (NASDAQ:SELB) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 18 June 2021. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for Selecta Biosciences
How Does Total Compensation For Carsten Brunn Compare With Other Companies In The Industry?
According to our data, Selecta Biosciences, Inc. has a market capitalization of US$563m, and paid its CEO total annual compensation worth US$2.1m over the year to December 2020. That's just a smallish increase of 5.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$550k.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$2.3m. This suggests that Selecta Biosciences remunerates its CEO largely in line with the industry average. What's more, Carsten Brunn holds US$561k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$550k | US$550k | 26% |
| Other | US$1.5m | US$1.4m | 74% |
| Total Compensation | US$2.1m | US$2.0m | 100% |
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. Selecta Biosciences pays out 26% 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 Selecta Biosciences, Inc.'s Growth Numbers
Selecta Biosciences, Inc. has seen its earnings per share (EPS) increase by 55% a year over the past three years. In the last year, its revenue is up 315%.
This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Selecta Biosciences, Inc. Been A Good Investment?
With a total shareholder return of -61% over three years, Selecta Biosciences, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.