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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 - 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 Cyclacel Pharmaceuticals

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

Our data indicates that Cyclacel Pharmaceuticals, Inc. is worth US$7.1m, and total annual CEO compensation is US$753k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$531k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$498k.

It would therefore appear that Cyclacel Pharmaceuticals, Inc. pays Spiro Rombotis 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

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

NasdaqCM:CYCC CEO Compensation, August 28th 2019

Is Cyclacel Pharmaceuticals, Inc. Growing?

Over the last three years Cyclacel Pharmaceuticals, Inc. has grown its earnings per share (EPS) by an average of 64% per year (using a line of best fit). It saw its revenue drop -25% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.

Has Cyclacel Pharmaceuticals, Inc. Been A Good Investment?

With a three year total loss of 93%, Cyclacel Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Cyclacel Pharmaceuticals, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Cyclacel Pharmaceuticals (free visualization of insider trades).

If you want to buy a stock that is better than Cyclacel Pharmaceuticals, this free list of high return, low debt companies is a great place to look.

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.