Key Insights
- Insmed's Annual General Meeting to take place on 15th of May
- CEO Will Lewis' total compensation includes salary of US$810.0k
- Total compensation is 37% below industry average
- Over the past three years, Insmed's EPS fell by 17% and over the past three years, the total shareholder return was 300%
Shareholders will probably not be disappointed by the robust results at Insmed Incorporated (NASDAQ:INSM) recently and they will be keeping this in mind as they go into the AGM on 15th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.
See our latest analysis for Insmed
How Does Total Compensation For Will Lewis Compare With Other Companies In The Industry?
At the time of writing, our data shows that Insmed Incorporated has a market capitalization of US$12b, and reported total annual CEO compensation of US$11m for the year to December 2024. That's just a smallish increase of 5.1% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$810k.
For comparison, other companies in the American Biotechs industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$17m. Accordingly, Insmed pays its CEO under the industry median. Moreover, Will Lewis also holds US$30m worth of Insmed stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$810k | US$780k | 7% |
| Other | US$10m | US$9.6m | 93% |
| Total Compensation | US$11m | US$10m | 100% |
On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. Insmed sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Insmed Incorporated's Growth Numbers
Over the last three years, Insmed Incorporated has shrunk its earnings per share by 17% per year. It achieved revenue growth of 19% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Insmed Incorporated Been A Good Investment?
We think that the total shareholder return of 300%, over three years, would leave most Insmed Incorporated shareholders smiling. 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.
In Summary...
Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Insmed that you should be aware of before investing.
Important note: Insmed is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Valuation is complex, but we're here to simplify it.
Discover if Insmed might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.