We Take A Look At Whether Getty Realty Corp.'s (NYSE:GTY) CEO May Be Underpaid

The impressive results at Getty Realty Corp. (NYSE:GTY) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 27 April 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Getty Realty

Comparing Getty Realty Corp.'s CEO Compensation With the industry

According to our data, Getty Realty Corp. has a market capitalization of US$1.3b, and paid its CEO total annual compensation worth US$1.7m over the year to December 2020. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$523k.

In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$4.0m. Accordingly, Getty Realty pays its CEO under the industry median.

Component	2020	2019	Proportion (2020)
Salary	US$523k	US$512k	30%
Other	US$1.2m	US$1.2m	70%
Total Compensation	US$1.7m	US$1.7m	100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Getty Realty pays out 30% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Getty Realty Corp.'s Growth Numbers

Over the past three years, Getty Realty Corp. has seen its funds from operations (FFO) grow by 10% per year. In the last year, its revenue is up 4.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Getty Realty Corp. Been A Good Investment?

Most shareholders would probably be pleased with Getty Realty Corp. for providing a total return of 45% over three years. 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 2 which make us uncomfortable) in Getty Realty we think you should know about.

Important note: Getty Realty is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

If you decide to trade Getty Realty, 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 (at) simplywallst.com.