U.S. markets open in 8 hours 58 minutes
  • S&P Futures

    -8.00 (-0.21%)
  • Dow Futures

    -4.00 (-0.01%)
  • Nasdaq Futures

    -56.25 (-0.43%)
  • Russell 2000 Futures

    -3.30 (-0.16%)
  • Crude Oil

    -0.22 (-0.42%)
  • Gold

    -9.10 (-0.49%)
  • Silver

    -0.23 (-0.92%)

    -0.0015 (-0.12%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +14.19 (+61.64%)

    -0.0018 (-0.13%)

    +0.2000 (+0.19%)

    -629.30 (-1.98%)
  • CMC Crypto 200

    -2.19 (-0.35%)
  • FTSE 100

    -86.64 (-1.30%)
  • Nikkei 225

    -390.49 (-1.36%)

Does Extra Space Storage Inc.'s (NYSE:EXR) CEO Salary Reflect Performance?

Simply Wall St

In 2017 Joe Margolis was appointed CEO of Extra Space Storage Inc. (NYSE:EXR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Extra Space Storage

How Does Joe Margolis's Compensation Compare With Similar Sized Companies?

According to our data, Extra Space Storage Inc. has a market capitalization of US$14b, and paid its CEO total annual compensation worth US$4.4m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$750k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

Most shareholders would consider it a positive that Joe Margolis takes less in total compensation than the CEOs of most other large 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.

The graphic below shows how CEO compensation at Extra Space Storage has changed from year to year.

NYSE:EXR CEO Compensation, December 13th 2019
NYSE:EXR CEO Compensation, December 13th 2019

Is Extra Space Storage Inc. Growing?

On average over the last three years, Extra Space Storage Inc. has grown earnings per share (EPS) by 8.9% each year (using a line of best fit). In the last year, its revenue is up 9.0%.

I'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.

Has Extra Space Storage Inc. Been A Good Investment?

Most shareholders would probably be pleased with Extra Space Storage Inc. for providing a total return of 58% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It looks like Extra Space Storage Inc. pays its CEO less than the average at large companies.

Joe Margolis is paid less than what is normal at large companies, and the total shareholder return has been pleasing over the last three years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Extra Space Storage shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.