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Is Physicians Realty Trust (NYSE:DOC) Excessively Paying Its CEO?

Simply Wall St

John Thomas became the CEO of Physicians Realty Trust (NYSE:DOC) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Physicians Realty Trust

How Does John Thomas's Compensation Compare With Similar Sized Companies?

According to our data, Physicians Realty Trust has a market capitalization of US$3.3b, and pays its CEO total annual compensation worth US$4.1m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$834k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.

So John Thomas 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 Physicians Realty Trust has changed over time.

NYSE:DOC CEO Compensation, September 4th 2019

Is Physicians Realty Trust Growing?

On average over the last three years, Physicians Realty Trust has grown earnings per share (EPS) by 13% each year (using a line of best fit). Its revenue is up 2.0% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.

Has Physicians Realty Trust Been A Good Investment?

Since shareholders would have lost about 7.3% over three years, some Physicians Realty Trust shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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

We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Physicians Realty Trust.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.