In 2013 Mike Nall was appointed CEO of Biocept, Inc. (NASDAQ:BIOC). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mike Nall’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Biocept, Inc. has a market cap of US$20m, and is paying total annual CEO compensation of US$440k. (This figure is for the year to December 2018). That’s actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$426k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$424k.
So Mike Nall receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Biocept has changed over time.
Is Biocept, Inc. Growing?
On average over the last three years, Biocept, Inc. has grown earnings per share (EPS) by 69% each year (using a line of best fit). Its revenue is down -36% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has Biocept, Inc. Been A Good Investment?
Given the total loss of 99% over three years, many shareholders in Biocept, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Mike Nall is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Biocept shares (free trial).
If you want to buy a stock that is better than Biocept, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.