Paul Bolno became the CEO of Wave Life Sciences Ltd. (NASDAQ:WVE) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Paul Bolno’s Compensation Compare With Similar Sized Companies?
Our data indicates that Wave Life Sciences Ltd. is worth US$1.2b, and total annual CEO compensation is US$3.2m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$515k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.7m.
So Paul Bolno is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.
You can see a visual representation of the CEO compensation at Wave Life Sciences, below.
Is Wave Life Sciences Ltd. Growing?
Over the last three years Wave Life Sciences Ltd. has shrunk its earnings per share by an average of 38% per year. Its revenue is up 237% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
Has Wave Life Sciences Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Wave Life Sciences Ltd. for providing a total return of 165% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Paul Bolno is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wave Life Sciences.
Important note: Wave Life Sciences 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.