Here's Why BioCardia, Inc.'s (NASDAQ:BCDA) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• BioCardia to hold its Annual General Meeting on 18th of October
• Salary of US$531.0k is part of CEO Peter Altman's total remuneration
• The overall pay is 34% below the industry average
• BioCardia's three-year loss to shareholders was 79% while its EPS grew by 43% over the past three years

Shareholders may be wondering what CEO Peter Altman plans to do to improve the less than great performance at BioCardia, Inc. (NASDAQ:BCDA) recently. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 18th of October. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for BioCardia

Comparing BioCardia, Inc.'s CEO Compensation With The Industry

According to our data, BioCardia, Inc. has a market capitalization of US$11m, and paid its CEO total annual compensation worth US$902k over the year to December 2022. We note that's a decrease of 21% compared to last year. In particular, the salary of US$531.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the American Biotechs industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.4m. This suggests that Peter Altman is paid below the industry median. What's more, Peter Altman holds US$224k worth of shares in the company in their own name.

Component	2022	2021	Proportion (2022)
Salary	US$531k	US$488k	59%
Other	US$371k	US$650k	41%
Total Compensation	US$902k	US$1.1m	100%

Speaking on an industry level, nearly 22% of total compensation represents salary, while the remainder of 78% is other remuneration. BioCardia is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

BioCardia, Inc.'s Growth

Over the past three years, BioCardia, Inc. has seen its earnings per share (EPS) grow by 43% per year. It saw its revenue drop 78% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BioCardia, Inc. Been A Good Investment?

The return of -79% over three years would not have pleased BioCardia, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The loss to shareholders over the past three years is certainly concerning. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key question may be why the fundamentals have not yet been reflected into the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 7 warning signs for BioCardia you should be aware of, and 4 of them are a bit concerning.

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. 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.