What Can We Learn About Crown Castle International (REIT)'s (NYSE:CCI) CEO Compensation?
Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
This article will reflect on the compensation paid to Jay Brown who has served as CEO of Crown Castle International Corp. (REIT) (NYSE:CCI) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Crown Castle International (REIT).
View our latest analysis for Crown Castle International (REIT)
How Does Total Compensation For Jay Brown Compare With Other Companies In The Industry?
At the time of writing, our data shows that Crown Castle International Corp. (REIT) has a market capitalization of US$69b, and reported total annual CEO compensation of US$13m for the year to December 2019. That's a notable increase of 40% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$986k.
On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$7.2m. Hence, we can conclude that Jay Brown is remunerated higher than the industry median. Moreover, Jay Brown also holds US$42m worth of Crown Castle International (REIT) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$986k | US$906k | 8% |
Other | US$12m | US$8.1m | 92% |
Total Compensation | US$13m | US$9.0m | 100% |
Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Crown Castle International (REIT) sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Crown Castle International Corp. (REIT)'s Growth Numbers
Over the past three years, Crown Castle International Corp. (REIT) has seen its earnings per share (EPS) grow by 15% per year. In the last year, its revenue is up 5.4%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Crown Castle International Corp. (REIT) Been A Good Investment?
Boasting a total shareholder return of 90% over three years, Crown Castle International Corp. (REIT) has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
As previously discussed, Jay is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, Crown Castle International (REIT) has produced strong earnings growth and shareholder returns over the last three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Jay deserves a raise!
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 3 warning signs for Crown Castle International (REIT) (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Crown Castle International (REIT), if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
