Is EPR Properties’s (NYSE:EPR) CEO Pay Justified?

In this article:

Greg Silvers has been the CEO of EPR Properties (NYSE:EPR) since 2015. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for EPR Properties

How Does Greg Silvers’s Compensation Compare With Similar Sized Companies?

Our data indicates that EPR Properties is worth US$5.0b, and total annual CEO compensation is US$5m. That’s actually a decrease on the year before. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12.0b. The median total CEO compensation was US$7m.

So Greg Silvers receives a similar amount to the median CEO pay, amongst 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 EPR Properties, below.

NYSE:EPR CEO Compensation October 30th 18
NYSE:EPR CEO Compensation October 30th 18

Is EPR Properties Growing?

Over the last three years EPR Properties has grown its earnings per share (EPS) by an average of 2.2% per year. In the last year, its revenue is up 15%.

This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. Although we’ll stop short of calling the stock a top performer, we think the company has potential.

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

Has EPR Properties Been A Good Investment?

I think that the total shareholder return of 41%, over three years, would leave most EPR Properties shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Greg Silvers is paid around the same as most CEOs of similar size companies.

While the growth could be better, the shareholder returns are clearly good. So all things considered I’d venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at EPR Properties.

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 editorial-team@simplywallst.com.

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