In 2007 Robert Blum was appointed CEO of Cytokinetics, Incorporated (NASDAQ:CYTK). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
How Does Robert Blum's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Cytokinetics, Incorporated has a market cap of US$678m, and reported total annual CEO compensation of US$3.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$630k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
So Robert Blum is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Cytokinetics has changed over time.
Is Cytokinetics, Incorporated Growing?
On average over the last three years, Cytokinetics, Incorporated has shrunk earnings per share by 54% each year (measured with a line of best fit). In the last year, its revenue is up 102%.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Cytokinetics, Incorporated Been A Good Investment?
Cytokinetics, Incorporated has generated a total shareholder return of 26% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Robert Blum is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. While the CEO may not be underpaid, we don't think the pay is too generous either. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Cytokinetics (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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