Should You Worry About MannKind Corporation's CEO Pay?

[mannmade]

www.yahoo.com/finance/news/worry-mannkind-corporations-nasdaq-mnkd-142242601.html

Should You Worry About MannKind Corporation's (NASDAQ:MNKD) CEO Pay?
Simply Wall St
Simply Wall St.January 22, 2020, 6:22 AM PST

In 2017 Michael Castagna was appointed CEO of MannKind Corporation (NASDAQ:MNKD). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for MannKind

How Does Michael Castagna's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that MannKind Corporation has a market cap of US$352m, and reported total annual CEO compensation of US$1.5m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$500k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.7m.

So Michael Castagna receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at MannKind, below.

NasdaqGM:MNKD CEO Compensation, January 22nd 2020
NasdaqGM:MNKD CEO Compensation, January 22nd 2020
Is MannKind Corporation Growing?

Over the last three years MannKind Corporation has shrunk its earnings per share by an average of 24% per year (measured with a line of best fit). In the last year, its revenue is up 300%.

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. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.

Has MannKind Corporation Been A Good Investment?

With a three year total loss of 50%, MannKind Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Michael Castagna is close enough to the median pay for a CEO of a similar sized company .

The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if MannKind insiders are buying or selling shares.

Important note: MannKind 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.

If you spot an error that warrants correction, please contact the editor at [e-mail]. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

[phantomfj]

I wonder for how long this has been written and waiting in the wings, just in case of a stock price rise???

[mango]

Random article for someone to write, targeting a CEO of a small cap biopharma company like MannKind.

I skipped to the conclusion and it seems the article is neutral (correct me if I am wrong), but the underlying reasoning behind wasting time and resources to write a hit piece like this raises red flags that cannot be ignored.

My conclusion: A hit piece by the Drive-by News Media

[akemp3000]

Not sure there's ever been a less relevant topic to the forthcoming direction of a company.

[apidistra]

"Simply Wall Street" or "Simply Nonsense?"

[kc]

Lock the thread down.

[uvula]

It isn't a hit piece. It is probably an automatically generated article intended to get stupid people to buy their stock picking software.

"About Simply Wall St
We are a Sydney based startup that helps people become better investors by turning complicated financial data into easy to understand infographics.
We started the company after realizing how many people are buying stocks only based on news hype or random hunches because it is too complicated for them to do proper research. That ends up with them either losing money or underperforming.
Our goal is to empower retail investors to make profitable non-emotional long term investment decisions. With the unique visual approach, we are making it possible even for the beginners. Every day we produce hundreds of thousands of infographics on companies and Portfolios."

I don't know how to make text bold, but look at the last sentence of their statement. They generate hundreds of thousands of pieces of crap every day.

[uvula]

Now you can lock the thread

[prcgorman2]

I assumed it was volunteered by HFM. Lock away!

[agedhippie]

Jan 22, 2020 12:25:42 GMT -5 phantomfj said:

I wonder for how long this has been written and waiting in the wings, just in case of a stock price rise???

It's just a random auto-generated article. If you look at it the content is fluff around a basic set of inputs. Notice that:
 - they flatly make the statement about cash/stock split in remuneration, but make no attempt to quantify if this is being hit or (as it was) modified,
 - it gives the EPS and Revenue change but no material commentary as to why it is where it is,
 - the 3 year stock price followed by a score based on the result expressed as shareholder sentiment (somewhere the algorithm has a percentage change to sentiment table) without regard to what shareholders actually feel,
 - summarizes what has just been said (waffled) into a couple of lines which rather gives the game away!
 - Finally the offer to let you do the editing and research they should have done in the first place.

It's click bait and anyone acting on that sort of report should just go a roulette table and dump the lot on red. Your chances of a good outcome are better than if you believe the trash that bot is churning out. I used to hate that sort of article with a vengeance, but now I just see it as Darwinism in action.

[sportsrancho]

Jan 22, 2020 13:31:54 GMT -5 prcgorman2 said:

I assumed it was volunteered by HFM. Lock away!

Absolutely incorrect, another spam statement!

[wsulylecoug]

This article with the exact same title except a different stock name shows up on several stocks I track

[mytakeonit]

I went for the click bait and liked the article. I'm also the guy that went to the roulette wheel and put a whole bunch of $$$ on zero/dbl zero. The ball jumped up and got stuck on the wheel ... so I downed my bet. Spin again and it lands on zero. Aaaarrrgghhh!!!

But, that's mytakeonit

[prcgorman2]

Jan 22, 2020 13:27:07 GMT -5 uvula said:

It isn't a hit piece. It is probably an automatically generated article intended to get stupid people to buy their stock picking software.

"About Simply Wall St
We are a Sydney based startup that helps people become better investors by turning complicated financial data into easy to understand infographics.
We started the company after realizing how many people are buying stocks only based on news hype or random hunches because it is too complicated for them to do proper research. That ends up with them either losing money or underperforming.
Our goal is to empower retail investors to make profitable non-emotional long term investment decisions. With the unique visual approach, we are making it possible even for the beginners. Every day we produce hundreds of thousands of infographics on companies and Portfolios."

I don't know how to make text bold, but look at the last sentence of their statement. They generate hundreds of thousands of pieces of crap every day.

Based in Sydney?  Maybe they should rename themselves "Simply Wallaby St".  They definitely put the simple in simply.  Do they accept volunteered "articles" like SA and Forbes?

[ktim]

I'd agree with uvula , smells a lot like robo content.

Earnings per share dropping 24% per year... eyes roll. Come on, what a meaningless mangling of data. Though if it really were a hit piece, you'd think they'd point out that it really is losses, not earnings, other than one time event.

Instead of locking the thread perhaps we need to have a moratorium on posting robo generated content.

"The per share growth could be better, in our view."

Hmm... it's not a single robot.  Thanks R2 and C3... very insightful read.  Not really... perhaps you should go back to saving the galaxy, stock analysis really isn't your strong suit.