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Is SBA Communications Corporation's (NASDAQ:SBAC) CEO Pay Justified?

Simply Wall St

Jeff Stoops became the CEO of SBA Communications Corporation (NASDAQ:SBAC) in 2002. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for SBA Communications

How Does Jeff Stoops's Compensation Compare With Similar Sized Companies?

Our data indicates that SBA Communications Corporation is worth US$28b, and total annual CEO compensation was reported as US$9.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$950k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

So Jeff Stoops receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at SBA Communications has changed from year to year.

NasdaqGS:SBAC CEO Compensation, January 20th 2020

Is SBA Communications Corporation Growing?

SBA Communications Corporation has increased its earnings per share (EPS) by an average of 9.3% a year, over the last three years (using a line of best fit). Its revenue is up 8.8% over last year.

I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has SBA Communications Corporation Been A Good Investment?

I think that the total shareholder return of 140%, over three years, would leave most SBA Communications Corporation shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Jeff Stoops is paid around the same as most CEOs of large companies.

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if SBA Communications insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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.