Extra Space Storage Inc.'s (NYSE:EXR) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Extra Space Storage's Annual General Meeting to take place on 21st of May
• Salary of US$900.0k is part of CEO Joe Margolis's total remuneration
• Total compensation is similar to the industry average
• Extra Space Storage's three-year loss to shareholders was 3.7% while its EPS was down 11% over the past three years

Our free stock report includes 2 warning signs investors should be aware of before investing in Extra Space Storage. Read for free now.

As many shareholders of Extra Space Storage Inc. (NYSE:EXR) will be aware, they have not made a gain on their investment in the past three years. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. The AGM coming up on 21st of May will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Extra Space Storage

How Does Total Compensation For Joe Margolis Compare With Other Companies In The Industry?

According to our data, Extra Space Storage Inc. has a market capitalization of US$33b, and paid its CEO total annual compensation worth US$13m over the year to December 2024. That's a modest increase of 3.3% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$900k.

For comparison, other companies in the American Capital Markets industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$17m. This suggests that Extra Space Storage remunerates its CEO largely in line with the industry average. Moreover, Joe Margolis also holds US$33m worth of Extra Space Storage stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$900k	US$900k	7%
Other	US$12m	US$11m	93%
Total Compensation	US$13m	US$12m	100%

Speaking on an industry level, nearly 11% of total compensation represents salary, while the remainder of 89% is other remuneration. Extra Space Storage pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Extra Space Storage Inc.'s Growth Numbers

Over the last three years, Extra Space Storage Inc. has shrunk its earnings per share by 11% per year. It achieved revenue growth of 15% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Extra Space Storage Inc. Been A Good Investment?

With a three year total loss of 3.7% for the shareholders, Extra Space Storage Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Extra Space Storage (1 doesn't sit too well with us!) that you should be aware of before investing here.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.