Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2012 Nancy Simonian was appointed CEO of Syros Pharmaceuticals, Inc. (NASDAQ:SYRS). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Nancy Simonian's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Syros Pharmaceuticals, Inc. has a market cap of US$306m, and is paying total annual CEO compensation of US$3.0m. (This is based on the year to December 2018). We note that's an increase of 36% above last year. While we always look at total compensation first, we note that the salary component is less, at US$560k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
It would therefore appear that Syros Pharmaceuticals, Inc. pays Nancy Simonian 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.
The graphic below shows how CEO compensation at Syros Pharmaceuticals has changed from year to year.
Is Syros Pharmaceuticals, Inc. Growing?
On average over the last three years, Syros Pharmaceuticals, Inc. has grown earnings per share (EPS) by 92% each year (using a line of best fit). It achieved revenue growth of 477% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Syros Pharmaceuticals, Inc. Been A Good Investment?
Given the total loss of 60% over three years, many shareholders in Syros Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Syros Pharmaceuticals, Inc., and compared it to remuneration at a group of similar sized companies. 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. So shareholders might not feel great about the fact that CEO pay increased on last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Syros Pharmaceuticals insiders are buying or selling shares.
If you want to buy a stock that is better than Syros 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 firstname.lastname@example.org. 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.