Key Insights

• Ensysce Biosciences to hold its Annual General Meeting on 21st of November
• Salary of US$404.9k is part of CEO D. Kirkpatrick's total remuneration
• The overall pay is 58% below the industry average
• Ensysce Biosciences' EPS grew by 72% over the past three years while total shareholder loss over the past three years was 100%

Shareholders may be wondering what CEO D. Kirkpatrick plans to do to improve the less than great performance at Ensysce Biosciences, Inc. (NASDAQ:ENSC) recently. 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 21st of November. 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. In our opinion, CEO compensation does not look excessive and we discuss why.

View our latest analysis for Ensysce Biosciences

How Does Total Compensation For D. Kirkpatrick Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ensysce Biosciences, Inc. has a market capitalization of US$9.4m, and reported total annual CEO compensation of US$509k for the year to December 2023. We note that's a decrease of 18% compared to last year. We note that the salary portion, which stands at US$404.9k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the American Biotechs industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.2m. In other words, Ensysce Biosciences pays its CEO lower than the industry median.

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Ensysce Biosciences pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Ensysce Biosciences, Inc.'s Growth Numbers

Ensysce Biosciences, Inc.'s earnings per share (EPS) grew 72% per year over the last three years. In the last year, its revenue is down 52%.

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. 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 Ensysce Biosciences, Inc. Been A Good Investment?

With a total shareholder return of -100% over three years, Ensysce Biosciences, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Ensysce Biosciences you should be aware of, and 3 of them are a bit unpleasant.

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.

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