In 2012 Chad Carpenter was appointed CEO of Reven Housing REIT, Inc. (NASDAQ:RVEN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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 Chad Carpenter’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Reven Housing REIT, Inc. has a market cap of US$34m, and is paying total annual CEO compensation of US$377k. (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$277k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$304k.
That means Chad Carpenter receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Reven Housing REIT, below.
Is Reven Housing REIT, Inc. Growing?
Reven Housing REIT, Inc. has increased its earnings per share (EPS) by an average of 8.2% a year, over the last three years Its revenue is up 18% over last year.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. So while performance isn’t amazing, we think it really does seem quite respectable.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Reven Housing REIT, Inc. Been A Good Investment?
Given the total loss of 51% over three years, many shareholders in Reven Housing REIT, Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Chad Carpenter is close enough to the median pay for a CEO of a similar sized company .
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Whatever your view on compensation, you might want to check if insiders are buying or selling Reven Housing REIT shares (free trial).
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 firstname.lastname@example.org.