Here’s What We Think About LTC Properties Inc’s (NYSE:LTC) CEO Pay
Wendy Simpson became the CEO of LTC Properties Inc (NYSE:LTC) in 2007. 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. 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.
Check out our latest analysis for LTC Properties
How Does Wendy Simpson’s Compensation Compare With Similar Sized Companies?
According to our data, LTC Properties Inc has a market capitalization of US$1.8b, and pays its CEO total annual compensation worth US$3.4m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$675k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.5m.
That means Wendy Simpson receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at LTC Properties has changed over time.
Is LTC Properties Inc Growing?
Over the last three years LTC Properties Inc has grown its earnings per share (EPS) by an average of 16% per year. In the last year, its revenue changed by just -0.1%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
You might want to check this free visual report on analyst forecasts for future earnings.
Has LTC Properties Inc Been A Good Investment?
LTC Properties Inc has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Remuneration for Wendy Simpson is close enough to the median pay for a CEO of a similar sized company .
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling LTC Properties (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past 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.
