Wendy Simpson has been the CEO of LTC Properties Inc (NYSE:LTC) since 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Wendy Simpson’s Compensation Compare With Similar Sized Companies?
According to our data, LTC Properties Inc has a market capitalization of US$1.7b, and pays its CEO total annual compensation worth US$3m. That’s a notable increase of 426% on last year. 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$3m.
That means Wendy Simpson receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at LTC Properties has changed from year to year.
Is LTC Properties Inc Growing?
Over the last three years LTC Properties Inc has grown its earnings per share (EPS) by an average of 10% per year. In the last year, its revenue is down -1.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has LTC Properties Inc Been A Good Investment?
With a total shareholder return of 16% over three years, LTC Properties Inc shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Wendy Simpson is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if LTC Properties Inc insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.