Jeff Stoops has been the CEO of SBA Communications Corporation (NASDAQ:SBAC) since 2002. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for SBA Communications
How Does Jeff Stoops's Compensation Compare With Similar Sized Companies?
According to our data, SBA Communications Corporation has a market capitalization of US$27b, and paid its CEO total annual compensation worth US$9.1m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$950k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Jeff Stoops is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at SBA Communications has changed from year to year.
Is SBA Communications Corporation Growing?
SBA Communications Corporation has increased its earnings per share (EPS) by an average of 9.3% a year, over the last three years (using a line of best fit). Its revenue is up 8.8% over last year.
I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has SBA Communications Corporation Been A Good Investment?
Most shareholders would probably be pleased with SBA Communications Corporation for providing a total return of 130% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Jeff Stoops is paid around the same as most CEOs of large companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Shareholders may want to check for free if SBA Communications insiders are buying or selling shares.
If you want to buy a stock that is better than SBA Communications, this free list of high return, low debt companies is a great place to look.
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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