U.S. Markets closed

Is Sabra Health Care REIT, Inc.'s (NASDAQ:SBRA) CEO Being Overpaid?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

In 2010 Rick Matros was appointed CEO of Sabra Health Care REIT, Inc. (NASDAQ:SBRA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Sabra Health Care REIT

How Does Rick Matros's Compensation Compare With Similar Sized Companies?

Our data indicates that Sabra Health Care REIT, Inc. is worth US$3.5b, and total annual CEO compensation is US$4.7m. (This is based on the year to December 2018). That's less than last year. While we always look at total compensation first, we note that the salary component is less, at US$850k. 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$5.2m.

So Rick Matros 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 Sabra Health Care REIT, below.

NasdaqGS:SBRA CEO Compensation, June 26th 2019

Is Sabra Health Care REIT, Inc. Growing?

Sabra Health Care REIT, Inc. has increased its earnings per share (EPS) by an average of 24% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 17%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.

Has Sabra Health Care REIT, Inc. Been A Good Investment?

Sabra Health Care REIT, Inc. has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. 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.

In Summary...

Rick Matros is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sabra Health Care REIT (free visualization of insider trades).

Important note: Sabra Health Care REIT may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.