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Is Physicians Realty Trust’s (NYSE:DOC) CEO Overpaid Relative To Its Peers?

Simply Wall St

In 2013 John Thomas was appointed CEO of Physicians Realty Trust (NYSE:DOC). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

View our latest analysis for Physicians Realty Trust

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

Our data indicates that Physicians Realty Trust is worth US$3.4b, and total annual CEO compensation is US$4.4m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$812k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$4.6m.

So John Thomas receives a similar amount to the median CEO pay, amongst the companies we looked at. 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.

You can see, below, how CEO compensation at Physicians Realty Trust has changed over time.

NYSE:DOC CEO Compensation, March 13th 2019

Is Physicians Realty Trust Growing?

Over the last three years Physicians Realty Trust has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). In the last year, its revenue is up 23%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Physicians Realty Trust Been A Good Investment?

Physicians Realty Trust has served shareholders reasonably well, with a total return of 15% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

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

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Physicians Realty Trust.

If you want to buy a stock that is better than Physicians Realty Trust, 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.