Yahoo Finance 
Yahoo Finance Plus Shareholders Will Most Likely Find Cytokinetics, Incorporated's (NASDAQ:CYTK) CEO Compensation Acceptable
Key Insights
Cytokinetics to hold its Annual General Meeting on 10th of May
Total pay for CEO Robert Blum includes US$742.4k salary
The overall pay is comparable to the industry average
Cytokinetics' EPS declined by 22% over the past three years while total shareholder return over the past three years was 137%
CEO Robert Blum has done a decent job of delivering relatively good performance at Cytokinetics, Incorporated (NASDAQ:CYTK) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 10th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Cytokinetics
Comparing Cytokinetics, Incorporated's CEO Compensation With The Industry
At the time of writing, our data shows that Cytokinetics, Incorporated has a market capitalization of US$3.8b, and reported total annual CEO compensation of US$8.5m for the year to December 2022. We note that's an increase of 33% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$742k.
On comparing similar companies from the American Biotechs industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$8.2m. This suggests that Cytokinetics remunerates its CEO largely in line with the industry average. Moreover, Robert Blum also holds US$12m worth of Cytokinetics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$742k | US$709k | 9% |
Other | US$7.8m | US$5.7m | 91% |
Total Compensation | US$8.5m | US$6.4m | 100% |
Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. Cytokinetics sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Cytokinetics, Incorporated's Growth Numbers
Over the last three years, Cytokinetics, Incorporated has shrunk its earnings per share by 22% per year. Its revenue is up 34% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Cytokinetics, Incorporated Been A Good Investment?
Boasting a total shareholder return of 137% over three years, Cytokinetics, Incorporated has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Although the company has performed relatively well, we still think there are some areas that could be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Cytokinetics you should be aware of, and 1 of them is potentially serious.
Switching gears from Cytokinetics, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
