Sean Reilly became the CEO of Lamar Advertising Company (REIT) (NASDAQ:LAMR) in 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
How Does Sean Reilly’s Compensation Compare With Similar Sized Companies?
According to our data, Lamar Advertising Company (REIT) has a market capitalization of US$8.2b, and pays its CEO total annual compensation worth US$4.4m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$700k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.9m.
Most shareholders would consider it a positive that Sean Reilly takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Lamar Advertising Company (REIT) has changed over time.
Is Lamar Advertising Company (REIT) Growing?
Over the last three years Lamar Advertising Company (REIT) has grown its earnings per share (EPS) by an average of 2.7% per year (using a line of best fit). Its revenue is up 6.1% over last year.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has Lamar Advertising Company (REIT) Been A Good Investment?
Most shareholders would probably be pleased with Lamar Advertising Company (REIT) for providing a total return of 52% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Lamar Advertising Company (REIT) is currently paying its CEO below what is normal for companies of its size.
It’s well worth noting that while Sean Reilly is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Shareholders may want to check for free if Lamar Advertising Company (REIT) insiders are buying or selling shares.
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.
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 firstname.lastname@example.org. 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.