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Is EPR Properties (NYSE:EPR) Overpaying Its CEO?

Simply Wall St

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Greg Silvers has been the CEO of EPR Properties (NYSE:EPR) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for EPR Properties

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

According to our data, EPR Properties has a market capitalization of US$5.9b, and pays its CEO total annual compensation worth US$5.1m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$725k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.4m.

That means Greg Silvers 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.

The graphic below shows how CEO compensation at EPR Properties has changed from year to year.

NYSE:EPR CEO Compensation, April 8th 2019

Is EPR Properties Growing?

Over the last three years EPR Properties has grown its earnings per share (EPS) by an average of 1.9% per year (using a line of best fit). It achieved revenue growth of 9.0% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 43%, over three years, would leave most EPR Properties shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Remuneration for Greg Silvers is close enough to the median pay for a CEO of a similar sized company .

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling EPR Properties (free visualization of insider trades).

Important note: EPR Properties may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.