Allurion shares plunge 10.32% intraday as CEO compensation surges 328% and stock hits 52-week low amid financial distress.

Allurion Technologies (ALUR) fell 10.32% intraday amid heightened concerns over executive compensation practices and deteriorating financial health. The stock’s decline aligns with news of CEO Shantanu Gaur’s 328% compensation surge to $2.8 million in 2024, driven entirely by equity grants, despite no performance-based cash bonuses for executives in 2023 or 2024. Simultaneously, the company announced a controversial option repricing to address deeply underwater executive options (exercise price $61.68 vs. stock price $1.85), signaling severe shareholder value destruction. These developments, combined with Allurion hitting a 52-week low of $1.80 and RTW’s conditional governance control over the board, underscored investor skepticism about management’s ability to execute strategic and financial goals. While positive clinical data on weight loss and lean mass retention was released, the stock’s sharp drop reflects overriding concerns over executive pay misalignment, liquidity risks, and corporate governance weaknesses.