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Does STORE Capital Corporation’s (NYSE:STOR) CEO Pay Reflect Performance?

Saundra Reilly

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Chris Volk became the CEO of STORE Capital Corporation (NYSE:STOR) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.

Check out our latest analysis for STORE Capital

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

Our data indicates that STORE Capital Corporation is worth US$6.9b, and total annual CEO compensation is US$5.9m. (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$747k. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO compensation was US$6.2m.

That means Chris Volk receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at STORE Capital has changed over time.

NYSE:STOR CEO Compensation, February 20th 2019

Is STORE Capital Corporation Growing?

Over the last three years STORE Capital Corporation has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 18%.

This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has STORE Capital Corporation Been A Good Investment?

Most shareholders would probably be pleased with STORE Capital Corporation for providing a total return of 52% over three years. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

Chris Volk is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at STORE Capital.

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

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.

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. Thank you for reading.