Yahoo Finance We Think Shareholders May Want To Consider A Review Of Moderna, Inc.'s (NASDAQ:MRNA) CEO Compensation Package
Key Insights
Moderna to hold its Annual General Meeting on 6th of May
CEO Stephane Bancel's total compensation includes salary of US$1.56m
The overall pay is comparable to the industry average
Moderna's three-year loss to shareholders was 40% while its EPS was down 23% over the past three years
The results at Moderna, Inc. (NASDAQ:MRNA) have been quite disappointing recently and CEO Stephane Bancel bears some responsibility for this. At the upcoming AGM on 6th of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for Moderna
How Does Total Compensation For Stephane Bancel Compare With Other Companies In The Industry?
According to our data, Moderna, Inc. has a market capitalization of US$41b, and paid its CEO total annual compensation worth US$17m over the year to December 2023. Notably, that's a decrease of 12% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.6m.
In comparison with other companies in the American Biotechs industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$17m. This suggests that Moderna remunerates its CEO largely in line with the industry average. Furthermore, Stephane Bancel directly owns US$2.4b worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.6m | US$1.4m | 9% |
Other | US$16m | US$18m | 91% |
Total Compensation | US$17m | US$19m | 100% |
On an industry level, around 24% of total compensation represents salary and 76% is other remuneration. It's interesting to note that Moderna allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Moderna, Inc.'s Growth
Moderna, Inc. has reduced its earnings per share by 23% a year over the last three years. It saw its revenue drop 64% over the last year.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Moderna, Inc. Been A Good Investment?
Few Moderna, Inc. shareholders would feel satisfied with the return of -40% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
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. We've identified 1 warning sign for Moderna that investors should be aware of in a dynamic business environment.
Important note: Moderna is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
