Shareholders May Not Be So Generous With SBA Communications Corporation's (NASDAQ:SBAC) CEO Compensation And Here's Why

CEO Jeff Stoops has done a decent job of delivering relatively good performance at SBA Communications Corporation (NASDAQ:SBAC) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for SBA Communications

Comparing SBA Communications Corporation's CEO Compensation With the industry

Our data indicates that SBA Communications Corporation has a market capitalization of US$32b, and total annual CEO compensation was reported as US$13m for the year to December 2020. Notably, that's an increase of 26% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$7.8m. This suggests that Jeff Stoops is paid more than the median for the industry. Furthermore, Jeff Stoops directly owns US$220m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$1.0m	US$980k	8%
Other	US$12m	US$9.2m	92%
Total Compensation	US$13m	US$10m	100%

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. SBA Communications pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

SBA Communications Corporation's Growth

Its revenue is up 3.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has SBA Communications Corporation Been A Good Investment?

We think that the total shareholder return of 82%, over three years, would leave most SBA Communications Corporation 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.

In Summary...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for SBA Communications (of which 2 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from SBA Communications, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. 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.
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