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Bill Bayless has been the CEO of American Campus Communities, Inc. (NYSE:ACC) since 2003. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Bill Bayless's Compensation Compare With Similar Sized Companies?
According to our data, American Campus Communities, Inc. has a market capitalization of US$6.5b, and pays its CEO total annual compensation worth US$4.7m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$791k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.9m.
Most shareholders would consider it a positive that Bill Bayless takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at American Campus Communities has changed from year to year.
Is American Campus Communities, Inc. Growing?
On average over the last three years, American Campus Communities, Inc. has grown earnings per share (EPS) by 1.4% each year (using a line of best fit). Its revenue is up 9.5% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has American Campus Communities, Inc. Been A Good Investment?
American Campus Communities, Inc. has not done too badly by shareholders, with a total return of 3.4%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It appears that American Campus Communities, Inc. remunerates its CEO below most similar sized companies.
Bill Bayless receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, from my perspective. But on this analysis I see no issue with the CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling American Campus Communities shares (free trial).
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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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.