We Discuss Why Ionis Pharmaceuticals, Inc.'s (NASDAQ:IONS) CEO Compensation May Be Closely Reviewed

Key Insights

• Ionis Pharmaceuticals will host its Annual General Meeting on 5th of June
• Salary of US$1.01m is part of CEO Brett Monia's total remuneration
• The overall pay is comparable to the industry average
• Ionis Pharmaceuticals' EPS declined by 50% over the past three years while total shareholder loss over the past three years was 6.7%

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Shareholders will probably not be too impressed with the underwhelming results at Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) recently. At the upcoming AGM on 5th of June, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Ionis Pharmaceuticals

How Does Total Compensation For Brett Monia Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ionis Pharmaceuticals, Inc. has a market capitalization of US$5.2b, and reported total annual CEO compensation of US$15m for the year to December 2024. We note that's an increase of 23% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.0m.

On examining similar-sized companies in the American Biotechs industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$13m. So it looks like Ionis Pharmaceuticals compensates Brett Monia in line with the median for the industry. Furthermore, Brett Monia directly owns US$6.1m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. Ionis Pharmaceuticals sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Ionis Pharmaceuticals, Inc.'s Growth Numbers

Ionis Pharmaceuticals, Inc. has reduced its earnings per share by 50% a year over the last three years. Its revenue is down 7.6% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Ionis Pharmaceuticals, Inc. Been A Good Investment?

Since shareholders would have lost about 6.7% over three years, some Ionis Pharmaceuticals, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Ionis 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.