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How Much Is GlycoMimetics' (NASDAQ:GLYC) CEO Getting Paid?

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This article will reflect on the compensation paid to Rachel King who has served as CEO of GlycoMimetics, Inc. (NASDAQ:GLYC) since 2003. This analysis will also assess whether GlycoMimetics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for GlycoMimetics

Comparing GlycoMimetics, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that GlycoMimetics, Inc. has a market capitalization of US$172m, and reported total annual CEO compensation of US$2.7m for the year to December 2019. Notably, that's a decrease of 16% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$559k.

For comparison, other companies in the same industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$1.6m. Accordingly, our analysis reveals that GlycoMimetics, Inc. pays Rachel King north of the industry median. Moreover, Rachel King also holds US$1.7m worth of GlycoMimetics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$559k

US$543k

21%

Other

US$2.1m

US$2.6m

79%

Total Compensation

US$2.7m

US$3.2m

100%

Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. GlycoMimetics pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at GlycoMimetics, Inc.'s Growth Numbers

Over the last three years, GlycoMimetics, Inc. has not seen its earnings per share change much, though they have deteriorated slightly. It achieved revenue growth of 43% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has GlycoMimetics, Inc. Been A Good Investment?

Since shareholders would have lost about 70% over three years, some GlycoMimetics, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, GlycoMimetics, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. It concerns us that EPS growth for the company is negative, while share price gains did not materialize over the last three years. In contrast, revenue growth for the company has been showing a positive trend. Suffice it to say, we don't think the CEO is underpaid!

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for GlycoMimetics that investors should think about before committing capital to this stock.

Switching gears from GlycoMimetics, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.