In 2013 Chad Williams was appointed CEO of QTS Realty Trust, Inc. (NYSE:QTS). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
How Does Chad Williams's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that QTS Realty Trust, Inc. has a market cap of US$2.8b, and is paying total annual CEO compensation of US$6.3m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$720k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m.
So Chad Williams 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 QTS Realty Trust, below.
Is QTS Realty Trust, Inc. Growing?
Over the last three years QTS Realty Trust, Inc. has shrunk its earnings per share by an average of 102% per year (measured with a line of best fit). In the last year, its revenue is down -1.1%.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has QTS Realty Trust, Inc. Been A Good Investment?
Since shareholders would have lost about 11% over three years, some QTS Realty Trust, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Remuneration for Chad Williams is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling QTS Realty Trust (free visualization of insider trades).
If you want to buy a stock that is better than QTS Realty Trust, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.