Ed Aldag became the CEO of Medical Properties Trust Inc (NYSE:MPW) in 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Ed Aldag’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Medical Properties Trust Inc has a market cap of US$6.0b, and is paying total annual CEO compensation of US$7.6m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$950k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO compensation of that group was US$6.9m.
That means Ed Aldag receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Medical Properties Trust has changed from year to year.
Is Medical Properties Trust Inc Growing?
Over the last three years Medical Properties Trust Inc has grown its earnings per share (EPS) by an average of 36% per year. It achieved revenue growth of 25% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Medical Properties Trust Inc Been A Good Investment?
Boasting a total shareholder return of 70% over three years, Medical Properties Trust Inc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Ed Aldag is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Medical Properties Trust shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 firstname.lastname@example.org.