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Shareholders Would Not Be Objecting To BeiGene, Ltd.'s (NASDAQ:ONC) CEO Compensation And Here's Why
Key Insights
- BeiGene will host its Annual General Meeting on 21st of May
- CEO John Oyler's total compensation includes salary of US$1.10m
- Total compensation is similar to the industry average
- BeiGene's EPS grew by 52% over the past three years while total shareholder return over the past three years was 68%
The performance at BeiGene, Ltd. (NASDAQ:ONC) has been quite strong recently and CEO John Oyler has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 21st of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
View our latest analysis for BeiGene
How Does Total Compensation For John Oyler Compare With Other Companies In The Industry?
Our data indicates that BeiGene, Ltd. has a market capitalization of US$24b, and total annual CEO compensation was reported as US$21m for the year to December 2024. Notably, that's an increase of 10% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.
For comparison, other companies in the American Biotechs industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$19m. So it looks like BeiGene compensates John Oyler in line with the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.1m | US$871k | 5% |
| Other | US$20m | US$18m | 95% |
| Total Compensation | US$21m | US$19m | 100% |
On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. In BeiGene's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at BeiGene, Ltd.'s Growth Numbers
BeiGene, Ltd.'s earnings per share (EPS) grew 52% per year over the last three years. In the last year, its revenue is up 51%.
Shareholders would be glad to know that the company has improved itself over the last few years. 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 BeiGene, Ltd. Been A Good Investment?
Boasting a total shareholder return of 68% over three years, BeiGene, Ltd. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. Seeing that earnings growth and share price performance seems to be on the right path, the more pressing focus for shareholders at the AGM may be how the board and management plans to turn the company into a sustainably profitable one.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for BeiGene that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.