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In 2013 Scott Schaeffer was appointed CEO of Independence Realty Trust, Inc. (NYSE:IRT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Scott Schaeffer's Compensation Compare With Similar Sized Companies?
Our data indicates that Independence Realty Trust, Inc. is worth US$1.3b, and total annual CEO compensation was reported as US$3.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$700k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$3.9m.
So Scott Schaeffer 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 Independence Realty Trust, below.
Is Independence Realty Trust, Inc. Growing?
On average over the last three years, Independence Realty Trust, Inc. has grown earnings per share (EPS) by 34% each year (using a line of best fit). It achieved revenue growth of 9.6% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Independence Realty Trust, Inc. Been A Good Investment?
I think that the total shareholder return of 93%, over three years, would leave most Independence Realty Trust, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Scott Schaeffer is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Independence 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.