A Quick Analysis On Bellicum Pharmaceuticals’ (NASDAQ:BLCM) CEO Compensation

Rick Fair has been the CEO of Bellicum Pharmaceuticals, Inc. (NASDAQ:BLCM) since 2017, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also assess whether Bellicum Pharmaceuticals pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Bellicum Pharmaceuticals

How Does Total Compensation For Rick Fair Compare With Other Companies In The Industry?

At the time of writing, our data shows that Bellicum Pharmaceuticals, Inc. has a market capitalization of US$32m, and reported total annual CEO compensation of US$1.7m for the year to December 2019. Notably, that’s a decrease of 47% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$566k.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.1m. Accordingly, our analysis reveals that Bellicum Pharmaceuticals, Inc. pays Rick Fair north of the industry median. What’s more, Rick Fair holds US$74k worth of shares in the company in their own name.

Component20192018Proportion (2019)
Salary US$566k US$551k 33%
Other US$1.2m US$2.7m 67%
Total CompensationUS$1.7m US$3.3m100%

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. Bellicum Pharmaceuticals pays out 33% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.

NasdaqCM:BLCM CEO Compensation September 15th 2020

Bellicum Pharmaceuticals, Inc.’s Growth

Bellicum Pharmaceuticals, Inc.’s earnings per share (EPS) grew 17% per year over the last three years. Its revenue is up 109% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..

Has Bellicum Pharmaceuticals, Inc. Been A Good Investment?

Given the total shareholder loss of 95% over three years, many shareholders in Bellicum Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary…

As we noted earlier, Bellicum Pharmaceuticals pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, we must not forget that the EPS growth has been very strong, but it’s disappointing to see negative shareholder returns over the same period. Considering overall performance, we can’t say Rick is underpaid, in fact compensation is definitely on the higher side.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company’s key performance areas. We did our research and identified 6 warning signs (and 2 which don’t sit too well with us) in Bellicum Pharmaceuticals we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.
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