In 2011 Chris Volk was appointed CEO of STORE Capital Corporation (NYSE:STOR). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Chris Volk's Compensation Compare With Similar Sized Companies?
Our data indicates that STORE Capital Corporation is worth US$8.4b, and total annual CEO compensation is US$6.3m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at US$800k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m.
That means Chris Volk 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.
You can see a visual representation of the CEO compensation at STORE Capital, below.
Is STORE Capital Corporation Growing?
Over the last three years STORE Capital Corporation has grown its earnings per share (EPS) by an average of 9.3% per year (using a line of best fit). In the last year, its revenue is up 24%.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Shareholders might be interested in this free visualization of analyst forecasts.
Has STORE Capital Corporation Been A Good Investment?
I think that the total shareholder return of 40%, over three years, would leave most STORE Capital Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Chris Volk is paid around the same as most CEOs of similar size 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. So you may want to check if insiders are buying STORE Capital shares with their own money (free access).
If you want to buy a stock that is better than STORE Capital, this free list of high return, low debt companies is a great place to look.
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