How Should Investors Feel About Bellicum Pharmaceuticals, Inc.’s (NASDAQ:BLCM) CEO Pay?

Rick Fair has been the CEO of Bellicum Pharmaceuticals, Inc. (NASDAQ:BLCM) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Bellicum Pharmaceuticals

How Does Rick Fair’s Compensation Compare With Similar Sized Companies?

According to our data, Bellicum Pharmaceuticals, Inc. has a market capitalization of US$57m, and pays its CEO total annual compensation worth US$3.3m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$551k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$476k.

Thus we can conclude that Rick Fair receives more in total compensation than the median of a group of companies in the same market, and of similar size to Bellicum Pharmaceuticals, Inc.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Bellicum Pharmaceuticals, below.

NasdaqGM:BLCM CEO Compensation, August 7th 2019
NasdaqGM:BLCM CEO Compensation, August 7th 2019

Is Bellicum Pharmaceuticals, Inc. Growing?

On average over the last three years, Bellicum Pharmaceuticals, Inc. has grown earnings per share (EPS) by 2.7% each year (using a line of best fit). Its revenue is up 338% over last year.

It’s hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn’t shabby. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list.

Has Bellicum Pharmaceuticals, Inc. Been A Good Investment?

With a three year total loss of 94%, Bellicum Pharmaceuticals, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We compared the total CEO remuneration paid by Bellicum Pharmaceuticals, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Although we’d stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Bellicum Pharmaceuticals.

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

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 editorial-team@simplywallst.com. 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.

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