Is Bio-Path Holdings Inc’s (NASDAQ:BPTH) CEO Being Overpaid?

In 2008 Peter Nielsen was appointed CEO of Bio-Path Holdings Inc (NASDAQ:BPTH). 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Bio-Path Holdings

How Does Peter Nielsen’s Compensation Compare With Similar Sized Companies?

Our data indicates that Bio-Path Holdings Inc is worth US$7m, and total annual CEO compensation is US$594k. That’s below the compensation, last year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$292k.

As you can see, Peter Nielsen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bio-Path Holdings Inc is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Bio-Path Holdings, below.

NasdaqCM:BPTH CEO Compensation October 23rd 18
NasdaqCM:BPTH CEO Compensation October 23rd 18

Is Bio-Path Holdings Inc Growing?

On average over the last three years, Bio-Path Holdings Inc has shrunk earnings per share by 9.6% each year. It achieved revenue growth of 185% over the last year.

As investors, we do are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. It’s hard to reach a conclusion about business performance right now. This may be one to watch.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bio-Path Holdings Inc Been A Good Investment?

With a three year total loss of 96%, Bio-Path Holdings Inc would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We compared total CEO remuneration at Bio-Path Holdings Inc with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bio-Path Holdings Inc (free visualization of insider trades).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.