Douglas Fambrough has been the CEO of Dicerna Pharmaceuticals, Inc. (NASDAQ:DRNA) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
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$982m, and reported total annual CEO compensation of US$2.5m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$507k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$2.7m.
So Douglas Fambrough receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Dicerna Pharmaceuticals has changed from year to year.
Is Dicerna Pharmaceuticals, Inc. Growing?
On average over the last three years, Dicerna Pharmaceuticals, Inc. has grown earnings per share (EPS) by 21% each year (using a line of best fit). In the last year, its revenue is up 188%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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?
Most shareholders would probably be pleased with Dicerna Pharmaceuticals, Inc. for providing a total return of 164% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Douglas Fambrough is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Dicerna Pharmaceuticals shares (free trial).
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.
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