How Should Investors React To Global Self Storage's (NASDAQ:SELF) CEO Pay?

Mark Winmill has been the CEO of Global Self Storage, Inc. (NASDAQ:SELF) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Global Self Storage pays its CEO appropriately, considering its funds from operations growth and total shareholder returns.

View our latest analysis for Global Self Storage

How Does Total Compensation For Mark Winmill Compare With Other Companies In The Industry?

According to our data, Global Self Storage, Inc. has a market capitalization of US$39m, and paid its CEO total annual compensation worth US$440k over the year to December 2019. Notably, that's a decrease of 15% over the year before. Notably, the salary which is US$337.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under US$200m, the reported median total CEO compensation was US$774k. Accordingly, Global Self Storage pays its CEO under the industry median. What's more, Mark Winmill holds US$544k worth of shares in the company in their own name.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that Global Self Storage pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Global Self Storage, Inc.'s Growth Numbers

Global Self Storage, Inc. has seen its funds from operations (FFO) increase by 9.6% per year over the past three years. Its revenue is up 6.2% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in FFO is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Global Self Storage, Inc. Been A Good Investment?

Global Self Storage, Inc. has not done too badly by shareholders, with a total return of 5.1%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we touched on above, Global Self Storage, Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, FFO growth and shareholder returns over the past three years have not impressed us. Consequently, despite CEO compensation being reasonable by all accounts, shareholders will likely want to see more growth before they agree to a potential bump.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Global Self Storage (2 shouldn't be ignored!) that you should be aware of before investing here.

Switching gears from Global Self Storage, 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.

If you decide to trade Global Self Storage, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.