Stock Analysis

Syros Pharmaceuticals, Inc.'s (NASDAQ:SYRS) CEO Will Probably Find It Hard To See A Huge Raise This Year

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In the past three years, the share price of Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 08 June 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

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How Does Total Compensation For Nancy Simonian Compare With Other Companies In The Industry?

Our data indicates that Syros Pharmaceuticals, Inc. has a market capitalization of US$393m, and total annual CEO compensation was reported as US$2.5m for the year to December 2020. That's a notable decrease of 30% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$598k.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$2.5m. So it looks like Syros Pharmaceuticals compensates Nancy Simonian in line with the median for the industry. What's more, Nancy Simonian holds US$4.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$598k US$578k 24%
Other US$1.9m US$3.0m 76%
Total CompensationUS$2.5m US$3.6m100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. Syros Pharmaceuticals is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NasdaqGS:SYRS CEO Compensation June 2nd 2021

A Look at Syros Pharmaceuticals, Inc.'s Growth Numbers

Over the past three years, Syros Pharmaceuticals, Inc. has seen its earnings per share (EPS) grow by 7.0% per year. Its revenue is up 349% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Syros Pharmaceuticals, Inc. Been A Good Investment?

The return of -52% over three years would not have pleased Syros Pharmaceuticals, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Syros Pharmaceuticals that you should be aware of before investing.

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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