Yahoo Finance Shareholders Will Probably Not Have Any Issues With Ionis Pharmaceuticals, Inc.'s (NASDAQ:IONS) CEO Compensation
Key Insights
Ionis Pharmaceuticals' Annual General Meeting to take place on 6th of June
Salary of US$960.9k is part of CEO Brett Monia's total remuneration
The total compensation is similar to the average for the industry
Ionis Pharmaceuticals' total shareholder return over the past three years was 8.8% while its EPS grew by 6.0% over the past three years
CEO Brett Monia has done a decent job of delivering relatively good performance at Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) recently. As shareholders go into the upcoming AGM on 6th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Ionis Pharmaceuticals
Comparing Ionis Pharmaceuticals, Inc.'s CEO Compensation With The Industry
According to our data, Ionis Pharmaceuticals, Inc. has a market capitalization of US$5.3b, and paid its CEO total annual compensation worth US$13m over the year to December 2023. That's a notable increase of 72% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$961k.
On comparing similar companies from the American Biotechs industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$12m. This suggests that Ionis Pharmaceuticals remunerates its CEO largely in line with the industry average. Moreover, Brett Monia also holds US$6.5m worth of Ionis Pharmaceuticals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$961k | US$825k | 8% |
Other | US$12m | US$6.4m | 92% |
Total Compensation | US$13m | US$7.3m | 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. Ionis 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 Ionis Pharmaceuticals, Inc.'s Growth Numbers
Ionis Pharmaceuticals, Inc. has seen its earnings per share (EPS) increase by 6.0% a year over the past three years. It achieved revenue growth of 35% over the last year.
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'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. 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 Ionis Pharmaceuticals, Inc. Been A Good Investment?
With a total shareholder return of 8.8% over three years, Ionis Pharmaceuticals, Inc. has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Ionis Pharmaceuticals that you should be aware of before investing.
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.
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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.
