Key Insights

• Tarsus Pharmaceuticals' Annual General Meeting to take place on 13th of June
• Salary of US$619.5k is part of CEO Bobby Azamian's total remuneration
• The overall pay is 49% below the industry average
• Over the past three years, Tarsus Pharmaceuticals' EPS fell by 57% and over the past three years, the total loss to shareholders 16%

Performance at Tarsus Pharmaceuticals, Inc. (NASDAQ:TARS) has been rather uninspiring recently and shareholders may be wondering how CEO Bobby Azamian plans to fix this. 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 13th of June. 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 have prepared some analysis below to show that CEO compensation looks to be reasonable.

Comparing Tarsus Pharmaceuticals, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Tarsus Pharmaceuticals, Inc. has a market capitalization of US$1.3b, and reported total annual CEO compensation of US$3.1m for the year to December 2023. That's a notable decrease of 20% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$620k.

For comparison, other companies in the American Pharmaceuticals industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$6.1m. That is to say, Bobby Azamian is paid under the industry median. Furthermore, Bobby Azamian directly owns US$28m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. It's interesting to note that Tarsus Pharmaceuticals 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.

A Look at Tarsus Pharmaceuticals, Inc.'s Growth Numbers

Over the last three years, Tarsus Pharmaceuticals, Inc. has shrunk its earnings per share by 57% per year. In the last year, its revenue is up 53%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Tarsus Pharmaceuticals, Inc. Been A Good Investment?

With a three year total loss of 16% for the shareholders, Tarsus Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The poor performance of the share price might have something to do with the lack of earnings growth. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board's judgement and decision-making is aligned with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Tarsus Pharmaceuticals that investors should be aware of in a dynamic business environment.

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.

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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.