Is Lamar Advertising Company (REIT)'s (NASDAQ:LAMR) CEO Paid Enough Relative To Peers?
Sean Reilly became the CEO of Lamar Advertising Company (REIT) (NASDAQ:LAMR) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Lamar Advertising Company (REIT)
How Does Sean Reilly's Compensation Compare With Similar Sized Companies?
According to our data, Lamar Advertising Company (REIT) has a market capitalization of US$8.8b, and paid its CEO total annual compensation worth US$5.6m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$700k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.7m.
That means Sean Reilly receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Lamar Advertising Company (REIT) has changed from year to year.
Is Lamar Advertising Company (REIT) Growing?
Over the last three years Lamar Advertising Company (REIT) has grown its earnings per share (EPS) by an average of 5.4% per year (using a line of best fit). It achieved revenue growth of 7.6% over the last year.
I'd prefer higher revenue growth, 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 Lamar Advertising Company (REIT) Been A Good Investment?
Most shareholders would probably be pleased with Lamar Advertising Company (REIT) for providing a total return of 51% over three years. 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...
Sean Reilly is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if Lamar Advertising Company (REIT) insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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