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Does Cyclacel Pharmaceuticals, Inc.’s (NASDAQ:CYCC) CEO Pay Reflect Performance?

Renee Allred

Spiro Rombotis has been the CEO of Cyclacel Pharmaceuticals, Inc. (NASDAQ:CYCC) since 1997. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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?

Our data indicates that Cyclacel Pharmaceuticals, Inc. is worth US$7.5m, and total annual CEO compensation is US$776k. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$531k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$307k.

As you can see, Spiro Rombotis is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Cyclacel Pharmaceuticals, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

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

NasdaqCM:CYCC CEO Compensation December 25th 18

Is Cyclacel Pharmaceuticals, Inc. Growing?

Cyclacel Pharmaceuticals, Inc. has increased its earnings per share (EPS) by an average of 54% a year, over the last three years In the last year, its revenue is down -72%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.

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 90% 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 the total CEO remuneration paid by Cyclacel Pharmaceuticals, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. 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. Shareholders may want to check for free if Cyclacel Pharmaceuticals insiders are buying or selling shares.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.