This Is Why Scinai Immunotherapeutics Ltd.'s (NASDAQ:SCNI) CEO Compensation Looks Appropriate

Key Insights

• Scinai Immunotherapeutics to hold its Annual General Meeting on 22nd of December
• Total pay for CEO Amir Reichman includes US$338.0k salary
• The overall pay is 47% below the industry average
• Scinai Immunotherapeutics' EPS grew by 85% over the past three years while total shareholder loss over the past three years was 97%

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Performance at Scinai Immunotherapeutics Ltd. (NASDAQ:SCNI) has been rather uninspiring recently and shareholders may be wondering how CEO Amir Reichman plans to fix this. 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 22nd of December. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Scinai Immunotherapeutics

How Does Total Compensation For Amir Reichman Compare With Other Companies In The Industry?

According to our data, Scinai Immunotherapeutics Ltd. has a market capitalization of US$3.8m, and paid its CEO total annual compensation worth US$659k over the year to December 2024. That's a notable decrease of 29% on last year. Notably, the salary which is US$338.0k, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the American Biotechs industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.3m. In other words, Scinai Immunotherapeutics pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	US$338k	US$350k	51%
Other	US$321k	US$577k	49%
Total Compensation	US$659k	US$927k	100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. Scinai Immunotherapeutics is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Scinai Immunotherapeutics Ltd.'s Growth

Scinai Immunotherapeutics Ltd.'s earnings per share (EPS) grew 85% per year over the last three years. In the last year, its revenue is up 304%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Scinai Immunotherapeutics Ltd. Been A Good Investment?

The return of -97% over three years would not have pleased Scinai Immunotherapeutics Ltd. shareholders. This suggests it would be unwise for the company to pay the CEO too 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. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for Scinai Immunotherapeutics you should be aware of, and 3 of them are potentially serious.

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.

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.