Key Insights

• MannKind will host its Annual General Meeting on 15th of May

• CEO Michael Castagna's total compensation includes salary of US$701.5k

• The overall pay is 72% above the industry average

• MannKind's EPS grew by 23% over the past three years while total shareholder return over the past three years was 9.2%

Performance at MannKind Corporation (NASDAQ:MNKD) has been reasonably good and CEO Michael Castagna has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 15th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for MannKind

Comparing MannKind Corporation's CEO Compensation With The Industry

Our data indicates that MannKind Corporation has a market capitalization of US$1.2b, and total annual CEO compensation was reported as US$7.1m for the year to December 2023. That's a notable increase of 81% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$702k.

On comparing similar companies from the American Biotechs industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$4.1m. Hence, we can conclude that Michael Castagna is remunerated higher than the industry median. What's more, Michael Castagna holds US$4.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. MannKind pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at MannKind Corporation's Growth Numbers

Over the past three years, MannKind Corporation has seen its earnings per share (EPS) grow by 23% per year. It achieved revenue growth of 99% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MannKind Corporation Been A Good Investment?

MannKind Corporation has not done too badly by shareholders, with a total return of 9.2%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 identified 2 warning signs for MannKind (1 is potentially serious!) that you should be aware of before investing here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.