Is CoreSite Realty Corporation’s (NYSE:COR) CEO Pay Fair?

Paul Szurek has been the CEO of CoreSite Realty Corporation (NYSE:COR) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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.

Check out our latest analysis for CoreSite Realty

How Does Paul Szurek’s Compensation Compare With Similar Sized Companies?

Our data indicates that CoreSite Realty Corporation is worth US$5.2b, and total annual CEO compensation was reported as US$5.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$633k. 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$4.0b to US$12b, and the median CEO total compensation was US$6.5m.

So Paul Szurek is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at CoreSite Realty has changed over time.

NYSE:COR CEO Compensation, March 5th 2020
NYSE:COR CEO Compensation, March 5th 2020

Is CoreSite Realty Corporation Growing?

On average over the last three years, CoreSite Realty Corporation has grown earnings per share (EPS) by 9.5% each year (using a line of best fit). In the last year, its revenue is up 5.2%.

I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.

Has CoreSite Realty Corporation Been A Good Investment?

I think that the total shareholder return of 46%, over three years, would leave most CoreSite Realty Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Paul Szurek is paid around what is normal for the leaders of comparable size companies.

While the growth could be better, the shareholder returns are clearly good. So all things considered I’d venture that the CEO pay is appropriate. So you may want to check if insiders are buying CoreSite Realty 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.

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