Key Insights

• BioCardia to hold its Annual General Meeting on 20th of May

• Salary of US$515.5k is part of CEO Peter Altman's total remuneration

• Total compensation is 34% below industry average

• BioCardia's EPS grew by 26% over the past three years while total shareholder loss over the past three years was 89%

The performance at BioCardia, Inc. (NASDAQ:BCDA) has been rather lacklustre of late and shareholders may be wondering what CEO Peter Altman is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 20th of May. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for BioCardia

Comparing BioCardia, Inc.'s CEO Compensation With The Industry

According to our data, BioCardia, Inc. has a market capitalization of US$11m, and paid its CEO total annual compensation worth US$746k over the year to December 2023. We note that's a decrease of 17% compared to last year. We note that the salary portion, which stands at US$515.5k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the American Biotechs industry with market capitalizations under US$200m, the reported median total CEO compensation was US$1.1m. In other words, BioCardia pays its CEO lower than the industry median. What's more, Peter Altman holds US$219k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. BioCardia is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at BioCardia, Inc.'s Growth Numbers

BioCardia, Inc.'s earnings per share (EPS) grew 26% per year over the last three years. Its revenue is down 65% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BioCardia, Inc. Been A Good Investment?

Few BioCardia, Inc. shareholders would feel satisfied with the return of -89% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss is certainly disheartening. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 7 warning signs (and 3 which are a bit concerning) in BioCardia we think you should know about.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.