Nasdaq-Listed Companies

It's Unlikely That Bellicum Pharmaceuticals, Inc.'s (NASDAQ:BLCM) CEO Will See A Huge Pay Rise This Year

In the past three years, the share price of Bellicum Pharmaceuticals, Inc. (NASDAQ:BLCM) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 15 June 2021. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

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

At the time of writing, our data shows that Bellicum Pharmaceuticals, Inc. has a market capitalization of US$27m, and reported total annual CEO compensation of US$2.7m for the year to December 2020. That's a notable increase of 55% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$626k.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$1.1m. Accordingly, our analysis reveals that Bellicum Pharmaceuticals, Inc. pays Rick Fair north of the industry median.

Component20202019Proportion (2020)
Salary US$626k US$566k 23%
Other US$2.1m US$1.2m 77%
Total CompensationUS$2.7m US$1.7m100%

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. Bellicum Pharmaceuticals is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensationNasdaqCM:BLCM CEO Compensation June 9th 2021

Bellicum Pharmaceuticals, Inc.'s Growth

Over the past three years, Bellicum Pharmaceuticals, Inc. has seen its earnings per share (EPS) grow by 38% per year. It saw its revenue drop 92% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Bellicum Pharmaceuticals, Inc. Been A Good Investment?

The return of -97% over three years would not have pleased Bellicum Pharmaceuticals, Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 7 warning signs for Bellicum Pharmaceuticals (4 are concerning!) that you should be aware of before investing here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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