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Is Cyclacel Pharmaceuticals, Inc.'s (NASDAQ:CYCC) CEO Paid At A Competitive Rate?

Simply Wall St

In 1997 Spiro Rombotis was appointed CEO of Cyclacel Pharmaceuticals, Inc. (NASDAQ:CYCC). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Cyclacel Pharmaceuticals

How Does Spiro Rombotis's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Cyclacel Pharmaceuticals, Inc. has a market cap of US$12m, and reported total annual CEO compensation of US$753k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$531k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$520k.

Thus we can conclude that Spiro Rombotis receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cyclacel Pharmaceuticals, Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Cyclacel Pharmaceuticals has changed from year to year.

NasdaqCM:CYCC CEO Compensation, February 10th 2020

Is Cyclacel Pharmaceuticals, Inc. Growing?

Over the last three years Cyclacel Pharmaceuticals, Inc. has grown its earnings per share (EPS) by an average of 68% per year (using a line of best fit). In the last year, its revenue is down 15%.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.

Has Cyclacel Pharmaceuticals, Inc. Been A Good Investment?

Since shareholders would have lost about 86% over three years, some Cyclacel Pharmaceuticals, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Cyclacel Pharmaceuticals, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cyclacel Pharmaceuticals.

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.

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.

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.