Greg Stapley has been the CEO of CareTrust REIT, Inc. (NASDAQ:CTRE) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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.
How Does Greg Stapley’s Compensation Compare With Similar Sized Companies?
Our data indicates that CareTrust REIT, Inc. is worth US$1.7b, and total annual CEO compensation is US$3.1m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$495k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.6m.
So Greg Stapley is paid around the average of 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 CareTrust REIT, below.
Is CareTrust REIT, Inc. Growing?
On average over the last three years, CareTrust REIT, Inc. has grown earnings per share (EPS) by 20% each year. It achieved revenue growth of 23% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has CareTrust REIT, Inc. Been A Good Investment?
I think that the total shareholder return of 117%, over three years, would leave most CareTrust REIT, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Greg Stapley is paid around what is normal the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling CareTrust REIT shares (free trial).
Or you might prefer examine intently this intuitive graph showing past 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 firstname.lastname@example.org.