Performance at Cytokinetics, Incorporated (NASDAQ:CYTK) has been reasonably good and CEO Robert Blum has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 12 May 2021. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Cytokinetics

Comparing Cytokinetics, Incorporated's CEO Compensation With the industry

Our data indicates that Cytokinetics, Incorporated has a market capitalization of US$1.9b, and total annual CEO compensation was reported as US$6.2m for the year to December 2020. That's a notable increase of 78% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$682k.

For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$3.8m. This suggests that Robert Blum is paid more than the median for the industry. What's more, Robert Blum holds US$4.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 22% of total compensation represents salary and 78% is other remuneration. Cytokinetics pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Cytokinetics, Incorporated's Growth

Cytokinetics, Incorporated has seen its earnings per share (EPS) increase by 6.7% a year over the past three years. In the last year, its revenue is up 108%.

It's great to see that revenue growth is strong. 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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cytokinetics, Incorporated Been A Good Investment?

Boasting a total shareholder return of 185% over three years, Cytokinetics, Incorporated has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Cytokinetics you should be aware of, and 1 of them is a bit unpleasant.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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