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Is American Tower Corporation (REIT)'s (NYSE:AMT) CEO Pay Fair?

Simply Wall St

Jim Taiclet became the CEO of American Tower Corporation (REIT) (NYSE:AMT) in 2003. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for American Tower (REIT)

How Does Jim Taiclet's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that American Tower Corporation (REIT) has a market cap of US$91b, and is paying total annual CEO compensation of US$14m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.1m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

So Jim Taiclet receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at American Tower (REIT), below.

NYSE:AMT CEO Compensation, July 30th 2019

Is American Tower Corporation (REIT) Growing?

On average over the last three years, American Tower Corporation (REIT) has grown earnings per share (EPS) by 19% each year (using a line of best fit). In the last year, its revenue is up 11%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.

Has American Tower Corporation (REIT) Been A Good Investment?

Boasting a total shareholder return of 87% over three years, American Tower Corporation (REIT) 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...

Remuneration for Jim Taiclet is close enough to the median pay for a CEO of a large company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at American Tower (REIT).

Important note: American Tower (REIT) may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.