John Maraganore has been the CEO of Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) since 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Maraganore's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Alnylam Pharmaceuticals, Inc. has a market cap of US$13b, and reported total annual CEO compensation of US$5.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$800k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Most shareholders would consider it a positive that John Maraganore takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Alnylam Pharmaceuticals, below.
Is Alnylam Pharmaceuticals, Inc. Growing?
Over the last three years Alnylam Pharmaceuticals, Inc. has shrunk its earnings per share by an average of 21% per year (measured with a line of best fit). It achieved revenue growth of 193% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Alnylam Pharmaceuticals, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Alnylam Pharmaceuticals, Inc. for providing a total return of 129% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
It appears that Alnylam Pharmaceuticals, Inc. remunerates its CEO below most large companies.
John Maraganore receives relatively low remuneration compared to other large companies. And the returns to shareholders were great, over the last few years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Whatever your view on compensation, you might want to check if insiders are buying or selling Alnylam Pharmaceuticals shares (free trial).
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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