Should You Worry About Seritage Growth Properties's (NYSE:SRG) CEO Pay?
The CEO of Seritage Growth Properties (NYSE:SRG) is Ben Schall. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
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See our latest analysis for Seritage Growth Properties
How Does Ben Schall's Compensation Compare With Similar Sized Companies?
Our data indicates that Seritage Growth Properties is worth US$2.6b, and total annual CEO compensation is US$8.9m. (This number is for the twelve months until December 2018). Notably, that's an increase of 147% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$875k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.2m.
It would therefore appear that Seritage Growth Properties pays Ben Schall more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Seritage Growth Properties has changed from year to year.
Is Seritage Growth Properties Growing?
On average over the last three years, Seritage Growth Properties has shrunk earnings per share by 7.5% each year (measured with a line of best fit). In the last year, its revenue is down -9.1%.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Seritage Growth Properties Been A Good Investment?
With a total shareholder return of 13% over three years, Seritage Growth Properties shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared total CEO remuneration at Seritage Growth Properties with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
And while shareholder returns have been respectable, they have hardly been superb. It's also worth noting total remuneration to the CEO has increased, year on year. So you may want to delve deeper, because we don't think the CEO pay is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Seritage Growth Properties.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
