Key Insights

• CRISPR Therapeutics will host its Annual General Meeting on 30th of May
• CEO Sam Kulkarni's total compensation includes salary of US$724.5k
• The total compensation is similar to the average for the industry
• Over the past three years, CRISPR Therapeutics' EPS fell by 45% and over the past three years, the total loss to shareholders 53%

Shareholders of CRISPR Therapeutics AG (NASDAQ:CRSP) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also poor, despite revenues growing. Shareholders will have a chance to take their concerns to the board at the next AGM on 30th of May and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

Comparing CRISPR Therapeutics AG's CEO Compensation With The Industry

According to our data, CRISPR Therapeutics AG has a market capitalization of US$4.8b, and paid its CEO total annual compensation worth US$12m over the year to December 2023. That's a notable decrease of 41% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$725k.

On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$12m. So it looks like CRISPR Therapeutics compensates Sam Kulkarni in line with the median for the industry. Furthermore, Sam Kulkarni directly owns US$23m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 24% of total compensation out of all the companies we analyzed, while other remuneration made up 76% of the pie. CRISPR Therapeutics pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at CRISPR Therapeutics AG's Growth Numbers

Over the last three years, CRISPR Therapeutics AG has shrunk its earnings per share by 45% per year. It achieved revenue growth of 171% over the last year.

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. 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 CRISPR Therapeutics AG Been A Good Investment?

The return of -53% over three years would not have pleased CRISPR Therapeutics AG shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company's remuneration policies and evaluate if the board's judgement and decision-making is aligned with that of the company's shareholders.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for CRISPR Therapeutics that you should be aware of before investing.

Switching gears from CRISPR Therapeutics, 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.