Stuart Tanz became the CEO of Retail Opportunity Investments Corp (NASDAQ:ROIC) in 2009. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Stuart Tanz’s Compensation Compare With Similar Sized Companies?
According to our data, Retail Opportunity Investments Corp has a market capitalization of US$2.2b, and pays its CEO total annual compensation worth US$5.3m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$850k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.5m.
Thus we can conclude that Stuart Tanz receives more in total compensation than the median of a group of companies in the same market, and of similar size to Retail Opportunity Investments Corp. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Retail Opportunity Investments, below.
Is Retail Opportunity Investments Corp Growing?
Retail Opportunity Investments Corp has increased its earnings per share (EPS) by an average of 13% a year, over the last three years Its revenue is up 11% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis 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 Retail Opportunity Investments Corp Been A Good Investment?
Retail Opportunity Investments Corp has not done too badly by shareholders, with a total return of 7.5%, over three years. 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.
We compared total CEO remuneration at Retail Opportunity Investments Corp with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Retail Opportunity Investments.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.