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Chris Constant has been the CEO of Getty Realty Corp. (NYSE:GTY) since 2016. First, this article will compare CEO compensation with compensation at similar sized 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.
How Does Chris Constant’s Compensation Compare With Similar Sized Companies?
According to our data, Getty Realty Corp. has a market capitalization of US$1.3b, and pays its CEO total annual compensation worth US$1.3m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$494k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.9m.
A first glance this seems like a real positive for shareholders, since Chris Constant is paid less than the average total compensation paid by similar sized companies. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Getty Realty has changed from year to year.
Is Getty Realty Corp. Growing?
Getty Realty Corp. has reduced its earnings per share by an average of 6.9% a year, over the last three years (measured with a line of best fit). Its revenue is up 11% over last year.
Unfortunately, earnings per share have trended lower over the last three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Has Getty Realty Corp. Been A Good Investment?
Most shareholders would probably be pleased with Getty Realty Corp. for providing a total return of 61% 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.
Getty Realty Corp. is currently paying its CEO below what is normal for companies of its size.
It’s well worth noting that while Chris Constant is paid less than most company leaders (at similar sized companies), there isn’t much EPS growth. Having said that, returns to shareholders have been great. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. Shareholders may want to check for free if Getty Realty insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.