Key Insights

• Akoya Biosciences will host its Annual General Meeting on 4th of June

• Salary of US$542.5k is part of CEO Brian McKelligon's total remuneration

• Total compensation is 99% above industry average

• Akoya Biosciences' three-year loss to shareholders was 89% while its EPS grew by 56% over the past three years

The underwhelming share price performance of Akoya Biosciences, Inc. (NASDAQ:AKYA) in the past three years would have disappointed many shareholders. 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 4th 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.

See our latest analysis for Akoya Biosciences

How Does Total Compensation For Brian McKelligon Compare With Other Companies In The Industry?

According to our data, Akoya Biosciences, Inc. has a market capitalization of US$97m, and paid its CEO total annual compensation worth US$2.9m over the year to December 2023. We note that's a small decrease of 4.3% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$543k.

On comparing similar-sized companies in the American Life Sciences industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.5m. Hence, we can conclude that Brian McKelligon is remunerated higher than the industry median. Moreover, Brian McKelligon also holds US$86k worth of Akoya Biosciences stock directly under their own name.

Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. Our data reveals that Akoya Biosciences allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Akoya Biosciences, Inc.'s Growth

Akoya Biosciences, Inc. has seen its earnings per share (EPS) increase by 56% a year over the past three years. It achieved revenue growth of 18% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Akoya Biosciences, Inc. Been A Good Investment?

With a total shareholder return of -89% over three years, Akoya Biosciences, Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 4 warning signs for Akoya Biosciences that you should be aware of before investing.

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.