Is Tanger Factory Outlet Centers Inc’s (NYSE:SKT) CEO Paid At A Competitive Rate?
In 2009 Steve Tanger was appointed CEO of Tanger Factory Outlet Centers Inc (NYSE:SKT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Tanger Factory Outlet Centers
How Does Steve Tanger’s Compensation Compare With Similar Sized Companies?
Our data indicates that Tanger Factory Outlet Centers Inc is worth US$2.3b, and total annual CEO compensation is US$7.0m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$850k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$3.5m.
Thus we can conclude that Steve Tanger receives more in total compensation than the median of a group of companies in the same market, and of similar size to Tanger Factory Outlet Centers Inc. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Tanger Factory Outlet Centers has changed from year to year.
Is Tanger Factory Outlet Centers Inc Growing?
On average over the last three years, Tanger Factory Outlet Centers Inc has shrunk earnings per share by 41% each year. The trailing twelve months of revenue was pretty much the same as the prior period.
Sadly for shareholders, earnings per share are actually down, over three years. And the flat revenue is seriously uninspiring. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Tanger Factory Outlet Centers Inc Been A Good Investment?
With a three year total loss of 15%, Tanger Factory Outlet Centers Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Tanger Factory Outlet Centers Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tanger Factory Outlet Centers (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.
