Stan Crooke became the CEO of Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) in 1989. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Stan Crooke's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Ionis Pharmaceuticals, Inc. has a market cap of US$8.2b, and reported total annual CEO compensation of US$7.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$883k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.8m.
That means Stan Crooke receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Ionis Pharmaceuticals has changed over time.
Is Ionis Pharmaceuticals, Inc. Growing?
Ionis Pharmaceuticals, Inc. has increased its earnings per share (EPS) by an average of 124% a year, over the last three years (using a line of best fit). Its revenue is up 46% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Ionis Pharmaceuticals, Inc. Been A Good Investment?
I think that the total shareholder return of 71%, over three years, would leave most Ionis Pharmaceuticals, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Stan Crooke is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Ionis Pharmaceuticals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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