Here's What We Think About MyoKardia, Inc.'s (NASDAQ:MYOK) CEO Pay

Tassos Gianakakos has been the CEO of MyoKardia, Inc. (NASDAQ:MYOK) since 2013. 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.

Check out our latest analysis for MyoKardia

How Does Tassos Gianakakos's Compensation Compare With Similar Sized Companies?

Our data indicates that MyoKardia, Inc. is worth US$2.0b, and total annual CEO compensation was reported as US$9.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$569k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.5m.

It would therefore appear that MyoKardia, Inc. pays Tassos Gianakakos more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at MyoKardia has changed over time.

Is MyoKardia, Inc. Growing?

MyoKardia, Inc. has reduced its earnings per share by an average of 70% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 49%.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has MyoKardia, Inc. Been A Good Investment?

Boasting a total shareholder return of 213% over three years, MyoKardia, 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.

In Summary...

We examined the amount MyoKardia, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. However, we can't argue with the strong returns to shareholders, over the same time period. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. On another note, we've spotted 3 warning signs for MyoKardia that investors should look into moving forward.

If you want to buy a stock that is better than MyoKardia, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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