This article will reflect on the compensation paid to Chip Clark who has served as CEO of Genocea Biosciences, Inc. (NASDAQ:GNCA) since 2011. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Genocea Biosciences.
See our latest analysis for Genocea Biosciences
How Does Total Compensation For Chip Clark Compare With Other Companies In The Industry?
At the time of writing, our data shows that Genocea Biosciences, Inc. has a market capitalization of US$119m, and reported total annual CEO compensation of US$1.1m for the year to December 2019. Notably, that's a decrease of 19% over the year before. In particular, the salary of US$532.6k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.1m. This suggests that Genocea Biosciences remunerates its CEO largely in line with the industry average.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$533k | US$515k | 50% |
| Other | US$530k | US$796k | 50% |
| Total Compensation | US$1.1m | US$1.3m | 100% |
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. According to our research, Genocea Biosciences has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Genocea Biosciences, Inc.'s Growth Numbers
Over the past three years, Genocea Biosciences, Inc. has seen its earnings per share (EPS) grow by 87% per year. In the last year, its revenue is up 57%.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Genocea Biosciences, Inc. Been A Good Investment?
Given the total shareholder loss of 76% over three years, many shareholders in Genocea Biosciences, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
