GlycoMimetics, Inc. (NASDAQ:GLYC) has not performed well recently and CEO Rachel King will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 18 May 2021. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for GlycoMimetics

How Does Total Compensation For Rachel King Compare With Other Companies In The Industry?

At the time of writing, our data shows that GlycoMimetics, Inc. has a market capitalization of US$115m, and reported total annual CEO compensation of US$2.4m for the year to December 2020. Notably, that's a decrease of 11% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$576k.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.1m. This suggests that Rachel King is paid more than the median for the industry. Moreover, Rachel King also holds US$1.2m worth of GlycoMimetics stock directly under their own name.

Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. It's interesting to note that GlycoMimetics pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

GlycoMimetics, Inc.'s Growth

Earnings per share at GlycoMimetics, Inc. are much the same as they were three years ago, albeit slightly lower. Its revenue is down 75% over the previous year.

The lack of EPS growth is certainly uninspiring. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 GlycoMimetics, Inc. Been A Good Investment?

The return of -88% over three years would not have pleased GlycoMimetics, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for GlycoMimetics that you should be aware of before investing.

Important note: GlycoMimetics 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.

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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