U.S. Markets closed

Is LTC Properties, Inc. (NYSE:LTC) Overpaying Its CEO?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Wendy Simpson became the CEO of LTC Properties, Inc. (NYSE:LTC) in 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for LTC Properties

How Does Wendy Simpson's Compensation Compare With Similar Sized Companies?

Our data indicates that LTC Properties, Inc. is worth US$1.9b, and total annual CEO compensation is US$3.3m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$675k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.0m.

So Wendy Simpson 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.

You can see, below, how CEO compensation at LTC Properties has changed over time.

NYSE:LTC CEO Compensation, July 12th 2019

Is LTC Properties, Inc. Growing?

On average over the last three years, LTC Properties, Inc. has grown earnings per share (EPS) by 24% each year (using a line of best fit). Its revenue is down -3.3% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.

Has LTC Properties, Inc. Been A Good Investment?

With a total shareholder return of 4.6% over three years, LTC Properties, Inc. has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Remuneration for Wendy Simpson is close enough to the median pay for a CEO of a similar sized company .

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. Shareholders may want to check for free if LTC Properties insiders are buying or selling shares.

If you want to buy a stock that is better than LTC Properties, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.