Paul Bolno has been the CEO of Wave Life Sciences Ltd. (NASDAQ:WVE) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Paul Bolno’s Compensation Compare With Similar Sized Companies?
According to our data, Wave Life Sciences Ltd. has a market capitalization of US$1.1b, and pays its CEO total annual compensation worth US$3.2m. (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$515k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO compensation was US$2.2m.
Thus we can conclude that Paul Bolno receives more in total compensation than the median of a group of companies in the same market, and of similar size to Wave Life Sciences Ltd.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Wave Life Sciences has changed from year to year.
Is Wave Life Sciences Ltd. Growing?
Over the last three years Wave Life Sciences Ltd. has shrunk its earnings per share by an average of 38% per year. It achieved revenue growth of 237% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 Wave Life Sciences Ltd. Been A Good Investment?
Boasting a total shareholder return of 164% over three years, Wave Life Sciences Ltd. has done well by shareholders. 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.
We examined the amount Wave Life Sciences Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wave Life Sciences.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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 firstname.lastname@example.org.