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How Should Investors React To CatchMark Timber Trust, Inc.’s (NYSE:CTT) CEO Pay?

Ajay Mannan

Jerry Barag has been the CEO of CatchMark Timber Trust, Inc. (NYSE:CTT) since 2013. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for CatchMark Timber Trust

How Does Jerry Barag’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that CatchMark Timber Trust, Inc. has a market cap of US$386m, and is paying total annual CEO compensation of US$1.5m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$515k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.6m.

So Jerry Barag is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at CatchMark Timber Trust has changed from year to year.

NYSE:CTT CEO Compensation December 19th 18

Is CatchMark Timber Trust, Inc. Growing?

Over the last three years CatchMark Timber Trust, Inc. has shrunk its earnings per share by an average of 71% per year. In the last year, its revenue is down -73%.

Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. 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 CatchMark Timber Trust, Inc. Been A Good Investment?

With a three year total loss of 22%, CatchMark Timber Trust, Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Jerry Barag is paid around what is normal the leaders of comparable size companies.

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. Whatever your view on compensation, you might want to check if insiders are buying or selling CatchMark Timber Trust shares (free trial).

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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.