Shareholders May Be More Conservative With Gaming and Leisure Properties, Inc.'s (NASDAQ:GLPI) CEO Compensation For Now

By
Simply Wall St
Published
June 02, 2021
NasdaqGS:GLPI
Source: Shutterstock

CEO Peter Carlino has done a decent job of delivering relatively good performance at Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 10 June 2021. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Gaming and Leisure Properties

Comparing Gaming and Leisure Properties, Inc.'s CEO Compensation With the industry

According to our data, Gaming and Leisure Properties, Inc. has a market capitalization of US$11b, and paid its CEO total annual compensation worth US$12m over the year to December 2020. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.8m.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$7.8m. Accordingly, our analysis reveals that Gaming and Leisure Properties, Inc. pays Peter Carlino north of the industry median. What's more, Peter Carlino holds US$523m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary US$1.8m US$1.8m 16%
Other US$9.9m US$9.6m 84%
Total CompensationUS$12m US$11m100%

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. Gaming and Leisure Properties is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
NasdaqGS:GLPI CEO Compensation June 3rd 2021

A Look at Gaming and Leisure Properties, Inc.'s Growth Numbers

Gaming and Leisure Properties, Inc. has seen its funds from operations (FFO) increase by 14% per year over the past three years. Its revenue is up 1.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Gaming and Leisure Properties, Inc. Been A Good Investment?

We think that the total shareholder return of 66%, over three years, would leave most Gaming and Leisure Properties, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Gaming and Leisure Properties you should be aware of, and 1 of them doesn't sit too well with us.

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

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