NASDAQ:MNKD) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.” data-reactid=”28″ type=”text”>This article will reflect on the compensation paid to Michael Castagna who has served as CEO of MannKind Corporation (NASDAQ:MNKD) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing MannKind Corporation’s CEO Compensation With the industry
According to our data, MannKind Corporation has a market capitalization of US$399m, and paid its CEO total annual compensation worth US$1.6m over the year to December 2019. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at US$511k.
In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$2.3m. Accordingly, MannKind pays its CEO under the industry median. Furthermore, Michael Castagna directly owns US$354k worth of shares in the company.
On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. MannKind is paying a higher share of its remuneration through a 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.
MannKind Corporation’s Growth
Over the last three years, MannKind Corporation has shrunk its earnings per share by 3.5% per year. It achieved revenue growth of 17% over the last year.
this free visual depiction of what analysts expect for the future.” data-reactid=”54″ type=”text”>The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. 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 MannKind Corporation Been A Good Investment?
MannKind Corporation has generated a total shareholder return of 4.8% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
As previously discussed, Michael is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. And revenue growth for the company is showing some positive trends.And revenues are growing at a healthy clip.And revenues are increasing at a good pace over the past year. But we were hoping for higher shareholder returns and positive EPS growth during this stretch, which, unfortunately, did not materialize. All things considered, we don’t think CEO compensation is too generous, but stockholders might not favor a bump before overall performance improves substantially.
3 warning signs (and 1 which can’t be ignored) in MannKind we think you should know about.” data-reactid=”59″ type=”text”>CEO compensation is an important area to keep your eyes on, but we’ve also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which can’t be ignored) in MannKind we think you should know about.
list of high return, low debt companies is a great place to look.” data-reactid=”60″ type=”text”>Switching gears from MannKind, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. 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.