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How Should Investors Feel About Dicerna Pharmaceuticals, Inc.'s (NASDAQ:DRNA) CEO Pay?

Simply Wall St

Douglas Fambrough became the CEO of Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Dicerna Pharmaceuticals

How Does Douglas Fambrough's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Dicerna Pharmaceuticals, Inc. has a market cap of US$999m, and is paying total annual CEO compensation of US$2.5m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$507k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.

That means Douglas Fambrough receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Dicerna Pharmaceuticals has changed from year to year.

NasdaqGS:DRNA CEO Compensation, September 16th 2019

Is Dicerna Pharmaceuticals, Inc. Growing?

Over the last three years Dicerna Pharmaceuticals, Inc. has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). In the last year, its revenue is up 188%.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.

Has Dicerna Pharmaceuticals, Inc. Been A Good Investment?

I think that the total shareholder return of 344%, over three years, would leave most Dicerna Pharmaceuticals, Inc. shareholders smiling. 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...

Douglas Fambrough is paid around what is normal the leaders of comparable size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Dicerna Pharmaceuticals insiders are buying or selling shares.

If you want to buy a stock that is better than Dicerna Pharmaceuticals, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.