Chris Constant has been the CEO of Getty Realty Corp. (NYSE:GTY) since 2016. 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 - 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.
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How Does Chris Constant's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Getty Realty Corp. has a market cap of US$1.3b, and is paying total annual CEO compensation of US$1.3m. (This is based on the year to December 2018). That's a fairly small increase of 7.4% on year before. We think total compensation is more important but we note that the CEO salary is lower, at US$494k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
Most shareholders would consider it a positive that Chris Constant takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Getty Realty has changed from year to year.
Is Getty Realty Corp. Growing?
Over the last three years Getty Realty Corp. has shrunk its earnings per share by an average of 6.9% per year (measured with a line of best fit). Its revenue is up 11% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Getty Realty Corp. Been A Good Investment?
Boasting a total shareholder return of 90% over three years, Getty Realty Corp. has done well by shareholders. 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.
It appears that Getty Realty Corp. remunerates its CEO below most similar sized companies.
Chris Constant is paid less than CEOs of similar size companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. Shareholders may want to check for free if Getty Realty insiders are buying or selling shares.
Important note: Getty Realty may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.