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Is Bio-Path Holdings, Inc. (NASDAQ:BPTH) Excessively Paying Its CEO?

Simply Wall St

Peter Nielsen became the CEO of Bio-Path Holdings, Inc. (NASDAQ:BPTH) in 2008. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Bio-Path Holdings

How Does Peter Nielsen's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Bio-Path Holdings, Inc. has a market cap of US$34m, and is paying total annual CEO compensation of US$672k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$490k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$498k.

It would therefore appear that Bio-Path Holdings, Inc. pays Peter Nielsen more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Bio-Path Holdings has changed from year to year.

NasdaqCM:BPTH CEO Compensation, September 14th 2019

Is Bio-Path Holdings, Inc. Growing?

On average over the last three years, Bio-Path Holdings, Inc. has grown earnings per share (EPS) by 9.9% each year (using a line of best fit). Its revenue is up 185% over last year.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! You might want to check this free visual report on analyst forecasts for future earnings.

Has Bio-Path Holdings, Inc. Been A Good Investment?

With a three year total loss of 96%, Bio-Path Holdings, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We examined the amount Bio-Path Holdings, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Shareholders may want to check for free if Bio-Path Holdings insiders are buying or selling shares.

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

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Thank you for reading.