This article will reflect on the compensation paid to Rachel King who has served as CEO of GlycoMimetics, Inc. (NASDAQ:GLYC) since 2003. This analysis will also assess whether GlycoMimetics pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for GlycoMimetics
Comparing GlycoMimetics, Inc.'s CEO Compensation With the industry
Our data indicates that GlycoMimetics, Inc. has a market capitalization of US$197m, and total annual CEO compensation was reported as US$2.7m for the year to December 2019. We note that's a decrease of 16% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$559k.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$1.5m. This suggests that Rachel King is paid more than the median for the industry. What's more, Rachel King holds US$2.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$559k | US$543k | 21% |
| Other | US$2.1m | US$2.6m | 79% |
| Total Compensation | US$2.7m | US$3.2m | 100% |
Talking in terms of the industry, salary represented approximately 25% of total compensation out of all the companies we analyzed, while other remuneration made up 75% of the pie. GlycoMimetics sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
GlycoMimetics, Inc.'s Growth
Over the last three years, GlycoMimetics, Inc. has shrunk its earnings per share by 1.7% per year. In the last year, its revenue is up 39%.
The reduction in EPS, over three years, is arguably concerning. 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has GlycoMimetics, Inc. Been A Good Investment?
Since shareholders would have lost about 75% over three years, some GlycoMimetics, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we noted earlier, GlycoMimetics pays its CEO higher than the norm for similar-sized companies belonging to the same industry. At the same time, looking at EPS and total shareholder returns, it's tough to say GlycoMimetics is in a sound position, considering both metrics are down. On the bright side, at lease revenue growth seems to be marching northward. Few would argue that it's wise for the company to pay any more, before returns improve.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for GlycoMimetics that you should be aware of before investing.
Switching gears from GlycoMimetics, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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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About NasdaqCM:GLYC
GlycoMimetics
A biotechnology company, focuses on the discovery and development of therapies for cancers and inflammatory diseases in the United States.
Flawless balance sheet low.
