Rick Fair has been the CEO of Bellicum Pharmaceuticals, Inc. (NASDAQ:BLCM) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
How Does Rick Fair's Compensation Compare With Similar Sized Companies?
Our data indicates that Bellicum Pharmaceuticals, Inc. is worth US$94m, and total annual CEO compensation was reported as US$3.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$551k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$521k.
As you can see, Rick Fair is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bellicum Pharmaceuticals, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Bellicum Pharmaceuticals has changed over time.
Is Bellicum Pharmaceuticals, Inc. Growing?
Bellicum Pharmaceuticals, Inc. has increased its earnings per share (EPS) by an average of 5.2% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 214%.
It's hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I'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. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bellicum Pharmaceuticals, Inc. Been A Good Investment?
Given the total loss of 85% over three years, many shareholders in Bellicum Pharmaceuticals, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Bellicum Pharmaceuticals, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Shareholders may want to check for free if Bellicum Pharmaceuticals insiders are buying or selling shares.
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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