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Is CubeSmart (NYSE:CUBE) Excessively Paying Its CEO?

Chris Marr has been the CEO of CubeSmart (NYSE:CUBE) since 2014. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for CubeSmart

How Does Chris Marr’s Compensation Compare With Similar Sized Companies?

According to our data, CubeSmart has a market capitalization of US$5.8b, and pays its CEO total annual compensation worth US$3.9m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$687k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO compensation was US$6.9m.

Most shareholders would consider it a positive that Chris Marr takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at CubeSmart, below.

NYSE:CUBE CEO Compensation December 1st 18

Is CubeSmart Growing?

CubeSmart has increased its earnings per share (EPS) by an average of 31% a year, over the last three years It achieved revenue growth of 7.4% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.

It could be important to check this free visual depiction of what analysts expect for the future.

Has CubeSmart Been A Good Investment?

CubeSmart has generated a total shareholder return of 17% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

It looks like CubeSmart pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. While returns over the last few years haven’t been top notch, there is nothing to suggest to us that Chris Marr is overcompensated.

Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But it would be nice if insiders were also buying shares. Shareholders may want to check for free if CubeSmart insiders are buying or selling shares.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.