In 2014 Tim Wallace was appointed CEO of Community Healthcare Trust Incorporated (NYSE:CHCT). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Tim Wallace’s Compensation Compare With Similar Sized Companies?
According to our data, Community Healthcare Trust Incorporated has a market capitalization of US$630m, and pays its CEO total annual compensation worth US$1.6m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at US$376k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.2m.
So Tim Wallace receives a similar amount to the median CEO pay, amongst the companies we looked at. 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, below, how CEO compensation at Community Healthcare Trust has changed over time.
Is Community Healthcare Trust Incorporated Growing?
Community Healthcare Trust Incorporated has increased its earnings per share (EPS) by an average of 77% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 40%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Community Healthcare Trust Incorporated Been A Good Investment?
Boasting a total shareholder return of 138% over three years, Community Healthcare Trust Incorporated has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Tim Wallace is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Community Healthcare Trust 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.
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