Key Insights

• Pfizer's Annual General Meeting to take place on 24th of April
• CEO Albert Bourla's total compensation includes salary of US$1.80m
• The overall pay is comparable to the industry average
• Over the past three years, Pfizer's EPS fell by 29% and over the past three years, the total loss to shareholders 49%

We've discovered 3 warning signs about Pfizer. View them for free.

Pfizer Inc. (NYSE:PFE) has not performed well recently and CEO Albert Bourla will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 24th of April. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Comparing Pfizer Inc.'s CEO Compensation With The Industry

According to our data, Pfizer Inc. has a market capitalization of US$127b, and paid its CEO total annual compensation worth US$25m over the year to December 2024. We note that's an increase of 14% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.8m.

On comparing similar companies in the American Pharmaceuticals industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$21m. So it looks like Pfizer compensates Albert Bourla in line with the median for the industry. Moreover, Albert Bourla also holds US$8.2m worth of Pfizer stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$1.8m	US$1.8m	7%
Other	US$23m	US$20m	93%
Total Compensation	US$25m	US$22m	100%

Talking in terms of the industry, salary represented approximately 31% of total compensation out of all the companies we analyzed, while other remuneration made up 69% of the pie. It's interesting to note that Pfizer allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Pfizer Inc.'s Growth Numbers

Over the last three years, Pfizer Inc. has shrunk its earnings per share by 29% per year. Its revenue is up 6.8% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Pfizer Inc. Been A Good Investment?

The return of -49% over three years would not have pleased Pfizer Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.