We Take A Look At Why Alnylam Pharmaceuticals, Inc.'s (NASDAQ:ALNY) CEO Has Earned Their Pay Packet

Key Insights

• Alnylam Pharmaceuticals' Annual General Meeting to take place on 8th of May
• Salary of US$1.25m is part of CEO Yvonne Greenstreet's total remuneration
• Total compensation is similar to the industry average
• Alnylam Pharmaceuticals' EPS grew by 47% over the past three years while total shareholder return over the past three years was 93%

Our free stock report includes 1 warning sign investors should be aware of before investing in Alnylam Pharmaceuticals. Read for free now.

The performance at Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) has been quite strong recently and CEO Yvonne Greenstreet has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 8th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Alnylam Pharmaceuticals

Comparing Alnylam Pharmaceuticals, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Alnylam Pharmaceuticals, Inc. has a market capitalization of US$34b, and reported total annual CEO compensation of US$11m for the year to December 2024. We note that's an increase of 29% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

In comparison with other companies in the American Biotechs industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$16m. So it looks like Alnylam Pharmaceuticals compensates Yvonne Greenstreet in line with the median for the industry. Furthermore, Yvonne Greenstreet directly owns US$16m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$1.3m	US$976k	11%
Other	US$10m	US$7.9m	89%
Total Compensation	US$11m	US$8.9m	100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. In Alnylam Pharmaceuticals' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Alnylam Pharmaceuticals, Inc.'s Growth

Alnylam Pharmaceuticals, Inc. has seen its earnings per share (EPS) increase by 47% a year over the past three years. In the last year, its revenue is up 23%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Alnylam Pharmaceuticals, Inc. Been A Good Investment?

Boasting a total shareholder return of 93% over three years, Alnylam Pharmaceuticals, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Alnylam Pharmaceuticals that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.