Stock Analysis

How Does EPR Properties' (NYSE:EPR) CEO Salary Compare to Peers?

  •  Updated
Source: Shutterstock

This article will reflect on the compensation paid to Greg Silvers who has served as CEO of EPR Properties (NYSE:EPR) since 2015. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the funds from operations and shareholder returns of the company.

View our latest analysis for EPR Properties

How Does Total Compensation For Greg Silvers Compare With Other Companies In The Industry?

Our data indicates that EPR Properties has a market capitalization of US$2.3b, and total annual CEO compensation was reported as US$4.2m for the year to December 2019. That's a notable decrease of 19% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$770k.

For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$4.5m. From this we gather that Greg Silvers is paid around the median for CEOs in the industry. Furthermore, Greg Silvers directly owns US$15m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20192018Proportion (2019)
Salary US$770k US$747k 18%
Other US$3.4m US$4.4m 82%
Total CompensationUS$4.2m US$5.1m100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. EPR Properties is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

NYSE:EPR CEO Compensation December 23rd 2020

EPR Properties' Growth

EPR Properties has reduced its funds from operations (FFO) by 24% per year over the last three years. In the last year, its revenue is down 16%.

Few shareholders would be pleased to read that FFO have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has EPR Properties Been A Good Investment?

With a three year total loss of 43% for the shareholders, EPR Properties would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, EPR Properties is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, FFO growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for EPR Properties you should be aware of, and 1 of them is concerning.

Switching gears from EPR Properties, 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.

When trading EPR Properties or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

Valuation is complex, but we're helping make it simple.

Find out whether EPR Properties is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis