U.S. Markets close in 3 hrs 39 mins

Is Sabra Health Care REIT Inc’s (NASDAQ:SBRA) CEO Overpaid Relative To Its Peers?

Rick Matros has been the CEO of Sabra Health Care REIT Inc (NASDAQ:SBRA) since 2010. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

View our latest analysis for Sabra Health Care REIT

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

According to our data, Sabra Health Care REIT Inc has a market capitalization of US$3.9b, and pays its CEO total annual compensation worth US$5m. That’s a notable increase of 20% on last year. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m.

That means Rick Matros receives fairly typical remuneration for the CEO of a company that size. 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.

The graphic below shows how CEO compensation at Sabra Health Care REIT has changed from year to year.

NasdaqGS:SBRA CEO Compensation November 9th 18

Is Sabra Health Care REIT Inc Growing?

On average over the last three years, Sabra Health Care REIT Inc has grown earnings per share (EPS) by 31% each year. Its revenue is up 115% over last year.

This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Sabra Health Care REIT Inc Been A Good Investment?

I think that the total shareholder return of 38%, over three years, would leave most Sabra Health Care REIT Inc shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Rick Matros is paid around the same as most CEOs of similar size companies.

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. Shareholders may want to check for free if Sabra Health Care REIT Inc insiders are buying or selling shares.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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 editorial-team@simplywallst.com.