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Is Momenta Pharmaceuticals, Inc.'s (NASDAQ:MNTA) CEO Paid At A Competitive Rate?

Simply Wall St

Craig Wheeler became the CEO of Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) in 2006. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Momenta Pharmaceuticals

How Does Craig Wheeler's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Momenta Pharmaceuticals, Inc. has a market cap of US$1.3b, and is paying total annual CEO compensation of US$4.6m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$750k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.1m.

So Craig Wheeler is paid around the average of the companies we looked at. 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 Momenta Pharmaceuticals has changed over time.

NasdaqGS:MNTA CEO Compensation, September 16th 2019

Is Momenta Pharmaceuticals, Inc. Growing?

Over the last three years Momenta Pharmaceuticals, Inc. has shrunk its earnings per share by an average of 39% per year (measured with a line of best fit). In the last year, its revenue is down -37%.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Momenta Pharmaceuticals, Inc. Been A Good Investment?

Momenta Pharmaceuticals, Inc. has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

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

The company isn't growing earnings per share, and nor have the total returns inspired us. We do not think the CEO pay is a problem, but one might argue that the company should improve returns to shareholders before increasing it. Shareholders may want to check for free if Momenta Pharmaceuticals insiders are buying or selling shares.

If you want to buy a stock that is better than Momenta 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.