David Lukes became the CEO of SITE Centers Corp. (NYSE:SITC) in 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does David Lukes's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that SITE Centers Corp. has a market cap of US$2.5b, and reported total annual CEO compensation of US$6.0m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$850k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.0m.
So David Lukes is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at SITE Centers has changed over time.
Is SITE Centers Corp. Growing?
Over the last three years SITE Centers Corp. has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). Its revenue is down 34% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Shareholders might be interested in this free visualization of analyst forecasts.
Has SITE Centers Corp. Been A Good Investment?
Given the total loss of 35% over three years, many shareholders in SITE Centers Corp. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
David Lukes is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling SITE Centers shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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