How Much Is Cyclo Therapeutics, Inc. (NASDAQ:CYTH) CEO Getting Paid?

This article will reflect on the compensation paid to N. Fine who has served as CEO of Cyclo Therapeutics, Inc. (NASDAQ:CYTH) since 2015. This analysis will also assess whether Cyclo Therapeutics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Cyclo Therapeutics

Comparing Cyclo Therapeutics, Inc.'s CEO Compensation With the industry

According to our data, Cyclo Therapeutics, Inc. has a market capitalization of US$17m, and paid its CEO total annual compensation worth US$490k over the year to December 2019. That's a modest increase of 4.9% on the prior year. We note that the salary portion, which stands at US$400.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$965k. This suggests that N. Fine is paid below the industry median. Furthermore, N. Fine directly owns US$33m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 24% of total compensation represents salary and 76% is other remuneration. Cyclo Therapeutics 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.

A Look at Cyclo Therapeutics, Inc.'s Growth Numbers

Over the last three years, Cyclo Therapeutics, Inc. has shrunk its earnings per share by 13% per year. In the last year, its revenue is down 3.3%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cyclo Therapeutics, Inc. Been A Good Investment?

With a three year total loss of 88% for the shareholders, Cyclo Therapeutics, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, N. is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 6 warning signs for Cyclo Therapeutics (of which 3 are concerning!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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. 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.
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