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Is National Retail Properties, Inc. (NYSE:NNN) Excessively Paying Its CEO?

Simply Wall St

Jay Whitehurst has been the CEO of National Retail Properties, Inc. (NYSE:NNN) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for National Retail Properties

How Does Jay Whitehurst's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that National Retail Properties, Inc. has a market cap of US$9.1b, and reported total annual CEO compensation of US$4.9m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$775k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. 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$6.5m.

So Jay Whitehurst is paid around the average of 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 National Retail Properties, below.

NYSE:NNN CEO Compensation, January 6th 2020

Is National Retail Properties, Inc. Growing?

On average over the last three years, National Retail Properties, Inc. has grown earnings per share (EPS) by 6.5% each year (using a line of best fit). It achieved revenue growth of 6.9% over the last year.

I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has National Retail Properties, Inc. Been A Good Investment?

National Retail Properties, Inc. has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

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

We see room for improved growth, as well as fairly unremarkable returns over the last three years. But we don't think the CEO compensation is a problem. Shareholders may want to check for free if National Retail Properties insiders are buying or selling shares.

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

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.

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. Thank you for reading.