Key Insights

• Immatics' Annual General Meeting to take place on 20th of June
• CEO Harpreet Singh's total compensation includes salary of €488.0k
• Total compensation is similar to the industry average
• Immatics' total shareholder return over the past three years was 7.5% while its EPS grew by 49% over the past three years

Under the guidance of CEO Harpreet Singh, Immatics N.V. (NASDAQ:IMTX) has performed reasonably well 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 20th of June. We present our case of why we think CEO compensation looks fair.

Comparing Immatics N.V.'s CEO Compensation With The Industry

At the time of writing, our data shows that Immatics N.V. has a market capitalization of US$1.3b, and reported total annual CEO compensation of €6.4m for the year to December 2023. We note that's a decrease of 15% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at €488k.

In comparison with other companies in the American Biotechs industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was €6.6m. From this we gather that Harpreet Singh is paid around the median for CEOs in the industry. Furthermore, Harpreet Singh directly owns US$17m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. Immatics sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Immatics N.V.'s Growth

Immatics N.V. has seen its earnings per share (EPS) increase by 49% a year over the past three years. Its revenue is down 6.6% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Immatics N.V. Been A Good Investment?

Immatics N.V. has not done too badly by shareholders, with a total return of 7.5%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

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 3 warning signs (and 1 which is potentially serious) in Immatics we think you should know about.

Important note: Immatics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.

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