Yahoo Finance Shareholders May Be More Conservative With Mirum Pharmaceuticals, Inc.'s (NASDAQ:MIRM) CEO Compensation For Now
Key Insights
Mirum Pharmaceuticals' Annual General Meeting to take place on 5th of June
Total pay for CEO Chris Peetz includes US$660.0k salary
The overall pay is 52% above the industry average
Mirum Pharmaceuticals' total shareholder return over the past three years was 50% while its EPS grew by 6.8% over the past three years
Under the guidance of CEO Chris Peetz, Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) has performed reasonably well recently. As shareholders go into the upcoming AGM on 5th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Mirum Pharmaceuticals
Comparing Mirum Pharmaceuticals, Inc.'s CEO Compensation With The Industry
Our data indicates that Mirum Pharmaceuticals, Inc. has a market capitalization of US$1.2b, and total annual CEO compensation was reported as US$6.5m for the year to December 2023. We note that's an increase of 47% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$660k.
On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$4.3m. Accordingly, our analysis reveals that Mirum Pharmaceuticals, Inc. pays Chris Peetz north of the industry median. Furthermore, Chris Peetz directly owns US$6.2m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$660k | US$624k | 10% |
Other | US$5.8m | US$3.8m | 90% |
Total Compensation | US$6.5m | US$4.4m | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. Mirum Pharmaceuticals pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Mirum Pharmaceuticals, Inc.'s Growth Numbers
Over the past three years, Mirum Pharmaceuticals, Inc. has seen its earnings per share (EPS) grow by 6.8% per year. In the last year, its revenue is up 134%.
It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 Mirum Pharmaceuticals, Inc. Been A Good Investment?
Boasting a total shareholder return of 50% over three years, Mirum Pharmaceuticals, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Mirum Pharmaceuticals that investors should think about before committing capital to this stock.
Switching gears from Mirum Pharmaceuticals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
