Anthony Hayes has been the CEO of AIkido Pharma Inc. (NASDAQ:AIKI) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for AIkido Pharma
How Does Anthony Hayes's Compensation Compare With Similar Sized Companies?
According to our data, AIkido Pharma Inc. has a market capitalization of US$20m, and paid its CEO total annual compensation worth US$350k over the year to December 2019. That's a modest increase of 0.3% on the prior year year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$350k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$607k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of AIkido Pharma. Talking in terms of the sector, salary represented approximately 23% of total compensation out of all the companies we analysed, while other remuneration made up 77% of the pie. Speaking on a company level, AIkido Pharma prefers to tread along a traditional path, disbursing all compensation through a salary.
At first glance this seems like a real positive for shareholders, since Anthony Hayes is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at AIkido Pharma has changed from year to year.
Is AIkido Pharma Inc. Growing?
AIkido Pharma Inc. has reduced its earnings per share by an average of 91% a year, over the last three years (measured with a line of best fit). Its revenue is down 68% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has AIkido Pharma Inc. Been A Good Investment?
With a three year total loss of 84%, AIkido Pharma Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It looks like AIkido Pharma Inc. pays its CEO less than similar sized companies.
Anthony Hayes is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. CEO compensation is an important area to keep your eyes on, but we've also identified 5 warning signs for AIkido Pharma (1 can't be ignored!) that you should be aware of before investing here.
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