It's Unlikely That Ikena Oncology, Inc.'s (NASDAQ:IKNA) CEO Will See A Huge Pay Rise This Year

editorial-team@simplywallst.com (Simply Wall St)

Sat, Jun 1, 2024, 7:45 AM 4 min read

Ikena Oncology's Annual General Meeting to take place on 7th of June
CEO Mark Manfredi's total compensation includes salary of US$569.0k
The overall pay is 44% above the industry average
Ikena Oncology's EPS grew by 75% over the past three years while total shareholder loss over the past three years was 89%

Shareholders of Ikena Oncology, Inc. (NASDAQ:IKNA) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in 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. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Ikena Oncology

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. We note that's a decrease of 50% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$569k.

In comparison with other companies in the American Pharmaceuticals industry with market capitalizations under US$200m, the reported median total CEO compensation was US$861k. Accordingly, our analysis reveals that Ikena Oncology, Inc. pays Mark Manfredi north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	US$569k	US$546k	46%
Other	US$672k	US$1.9m	54%
Total Compensation	US$1.2m	US$2.5m	100%

Talking in terms of the industry, salary represented approximately 29% of total compensation out of all the companies we analyzed, while other remuneration made up 71% of the pie. It's interesting to note that Ikena Oncology pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation — NasdaqGM:IKNA CEO Compensation June 1st 2024

A Look at Ikena Oncology, Inc.'s Growth Numbers

Over the past three years, Ikena Oncology, Inc. has seen its earnings per share (EPS) grow by 75% per year. 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. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

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. 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 on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 6 warning signs for Ikena Oncology (1 is a bit concerning!) that you should be aware of before investing here.

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.