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What Can We Conclude About EPR Properties' (NYSE:EPR) CEO Pay?

Simply Wall St
·4 min read

This article will reflect on the compensation paid to Greg Silvers who has served as CEO of EPR Properties (NYSE:EPR) since 2015. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the funds from operations and shareholder returns of the company.

View our latest analysis for EPR Properties

How Does Total Compensation For Greg Silvers Compare With Other Companies In The Industry?

At the time of writing, our data shows that EPR Properties has a market capitalization of US$1.8b, and reported total annual CEO compensation of US$4.2m for the year to December 2019. Notably, that's a decrease of 19% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$770k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$4.6m. From this we gather that Greg Silvers is paid around the median for CEOs in the industry. Furthermore, Greg Silvers directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2019

2018

Proportion (2019)

Salary

US$770k

US$747k

18%

Other

US$3.4m

US$4.4m

82%

Total Compensation

US$4.2m

US$5.1m

100%

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. It's interesting to note that EPR Properties pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

A Look at EPR Properties' Growth Numbers

Over the last three years, EPR Properties has shrunk its funds from operations (FFO) by 8.9% per year. In the last year, its revenue is up 4.5%.

The decline in FFO is a bit concerning. The fairly low revenue growth fails to impress given that the FFO is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 EPR Properties Been A Good Investment?

Given the total shareholder loss of 58% over three years, many shareholders in EPR Properties are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, EPR Properties is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining FFO growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for EPR Properties you should be aware of, and 1 of them can't be ignored.

Important note: EPR Properties is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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@simplywallst.com.