In 2005 Jean-Jacques Bienaimé was appointed CEO of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN). First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jean-Jacques Bienaimé’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that BioMarin Pharmaceutical Inc. has a market cap of US$16b, and is paying total annual CEO compensation of US$16m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$1.1m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
As you can see, Jean-Jacques Bienaimé is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean BioMarin Pharmaceutical Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at BioMarin Pharmaceutical has changed over time.
Is BioMarin Pharmaceutical Inc. Growing?
On average over the last three years, BioMarin Pharmaceutical Inc. has grown earnings per share (EPS) by 43% each year (using a line of best fit). It achieved revenue growth of 14% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has BioMarin Pharmaceutical Inc. Been A Good Investment?
With a total shareholder return of 6.2% over three years, BioMarin Pharmaceutical Inc. has done okay by shareholders. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We examined the amount BioMarin Pharmaceutical Inc. pays its CEO, and compared it to the amount paid by other large companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling BioMarin Pharmaceutical (free visualization of insider trades).
Important note: BioMarin Pharmaceutical may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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