Stock Analysis

Why Syros Pharmaceuticals' (NASDAQ:SYRS) CEO Pay Matters

  •  Updated
NasdaqGS:SYRS
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This article will reflect on the compensation paid to Nancy Simonian who has served as CEO of Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) since 2012. This analysis will also assess whether Syros Pharmaceuticals pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Syros Pharmaceuticals

Comparing Syros Pharmaceuticals, Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Syros Pharmaceuticals, Inc. has a market capitalization of US$417m, and reported total annual CEO compensation of US$3.6m for the year to December 2019. We note that's an increase of 19% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$578k.

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$2.0m. This suggests that Nancy Simonian is paid more than the median for the industry. Moreover, Nancy Simonian also holds US$6.3m worth of Syros Pharmaceuticals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20192018Proportion (2019)
Salary US$578k US$560k 16%
Other US$3.0m US$2.5m 84%
Total CompensationUS$3.6m US$3.0m100%

On an industry level, around 24% of total compensation represents salary and 76% is other remuneration. Syros Pharmaceuticals sets aside a smaller share of compensation for 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.

ceo-compensation
NasdaqGS:SYRS CEO Compensation December 8th 2020

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

Syros Pharmaceuticals, Inc. has seen its earnings per share (EPS) increase by 6.8% a year over the past three years. In the last year, its revenue is up 319%.

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'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. 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 Syros Pharmaceuticals, Inc. Been A Good Investment?

Syros Pharmaceuticals, Inc. has generated a total shareholder return of 7.7% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we noted earlier, Syros Pharmaceuticals pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the business isn't growing EPS, and the returns to shareholders haven't been wonderful. We'd stop short of saying CEO pay is inappropriate, but we'd like to see healthier business growth from the company, moving forward.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Syros Pharmaceuticals that investors should look into moving forward.

Important note: Syros Pharmaceuticals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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