David Gladstone has been the CEO of Gladstone Land Corporation (NASDAQ:LAND) since 1997. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
How Does David Gladstone’s Compensation Compare With Similar Sized Companies?
Our data indicates that Gladstone Land Corporation is worth US$212m, and total annual CEO compensation is US$58k. (This number is for the twelve months until 2012). We think total compensation is more important but we note that the CEO salary is lower, at US$11k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$955k.
Most shareholders would consider it a positive that David Gladstone takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Gladstone Land, below.
Is Gladstone Land Corporation Growing?
Over the last three years Gladstone Land Corporation has shrunk its earnings per share by an average of 28% per year. Its revenue is up 53% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Gladstone Land Corporation Been A Good Investment?
I think that the total shareholder return of 69%, over three years, would leave most Gladstone Land Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Gladstone Land Corporation remunerates its CEO below most similar sized companies.
David Gladstone is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Gladstone Land (free visualization of insider trades).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
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 email@example.com.