Vinnie, Vin Milano has been the CEO of Idera Pharmaceuticals, Inc. (NASDAQ:IDRA) since 2014. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Vinnie, Vin Milano’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Idera Pharmaceuticals, Inc. has a market cap of US$86m, and reported total annual CEO compensation of US$1.8m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$600k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$496k.
As you can see, Vinnie, Vin Milano is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Idera Pharmaceuticals, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. It could be important to check this free visual depiction of what analysts expect for the future.
The graphic below shows how CEO compensation at Idera Pharmaceuticals has changed from year to year.
Is Idera Pharmaceuticals, Inc. Growing?
Over the last three years Idera Pharmaceuticals, Inc. has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). Its revenue is up 124% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Has Idera Pharmaceuticals, Inc. Been A Good Investment?
With a three year total loss of 86%, Idera Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Idera Pharmaceuticals, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Idera Pharmaceuticals.
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.