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Should You Worry About National Storage REIT's (ASX:NSR) CEO Pay Cheque?

Simply Wall St

The CEO of National Storage REIT (ASX:NSR) is Andrew Catsoulis. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for National Storage REIT

How Does Andrew Catsoulis's Compensation Compare With Similar Sized Companies?

According to our data, National Storage REIT has a market capitalization of AU$1.6b, and paid its CEO total annual compensation worth AU$1.5m over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$956k. We examined companies with market caps from AU$583m to AU$2.3b, and discovered that the median CEO total compensation of that group was AU$1.4m.

So Andrew Catsoulis is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at National Storage REIT, below.

ASX:NSR CEO Compensation, January 22nd 2020

Is National Storage REIT Growing?

National Storage REIT has increased its earnings per share (EPS) by an average of 54% a year, over the last three years (using a line of best fit). Its revenue is up 15% over last year.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has National Storage REIT Been A Good Investment?

I think that the total shareholder return of 70%, over three years, would leave most National Storage REIT shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Andrew Catsoulis is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying National Storage REIT shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.