Here's Why Some Shareholders May Not Be Too Generous With Cyclo Therapeutics, Inc.'s (NASDAQ:CYTH) CEO Compensation This Year

Performance at Cyclo Therapeutics, Inc. (NASDAQ:CYTH) has not been particularly rosy recently and shareholders will likely be holding CEO N. Fine and the board accountable for this. At the upcoming AGM on 24 June 2021, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for Cyclo Therapeutics

Comparing Cyclo Therapeutics, Inc.'s CEO Compensation With the industry

Our data indicates that Cyclo Therapeutics, Inc. has a market capitalization of US$67m, and total annual CEO compensation was reported as US$489k for the year to December 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at US$400.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$1.2m. Accordingly, Cyclo Therapeutics pays its CEO under the industry median. Moreover, N. Fine also holds US$1.2m worth of Cyclo Therapeutics stock directly under their own name.

Speaking on an industry level, nearly 20% of total compensation represents salary, while the remainder of 80% is other remuneration. According to our research, Cyclo Therapeutics has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Cyclo Therapeutics, Inc.'s Growth Numbers

Cyclo Therapeutics, Inc. has reduced its earnings per share by 2.5% a year over the last three years. Its revenue is down 16% over the previous year.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cyclo Therapeutics, Inc. Been A Good Investment?

Few Cyclo Therapeutics, Inc. shareholders would feel satisfied with the return of -68% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Cyclo Therapeutics (2 are potentially serious!) that you should be aware of before investing here.

Switching gears from Cyclo Therapeutics, 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.

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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