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Is Ionis Pharmaceuticals, Inc.’s (NASDAQ:IONS) CEO Pay Fair?

Arjun Bhatia

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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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Ionis Pharmaceuticals

How Does Stan Crooke’s Compensation Compare With Similar Sized Companies?

Our data indicates that Ionis Pharmaceuticals, Inc. is worth US$8.1b, and total annual CEO compensation is US$7.3m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$849k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO compensation of that group was US$6.4m.

That means Stan Crooke 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.

You can see, below, how CEO compensation at Ionis Pharmaceuticals has changed over time.

NASDAQGS:IONS CEO Compensation February 12th 19

Is Ionis Pharmaceuticals, Inc. Growing?

On average over the last three years, Ionis Pharmaceuticals, Inc. has grown earnings per share (EPS) by 44% each year (using a line of best fit). In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Ionis Pharmaceuticals, Inc. Been A Good Investment?

Boasting a total shareholder return of 65% over three years, Ionis Pharmaceuticals, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Stan Crooke is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ionis Pharmaceuticals.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.