Wendy Simpson became the CEO of LTC Properties, Inc. (NYSE:LTC) in 2007. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
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How Does Wendy Simpson’s Compensation Compare With Similar Sized Companies?
According to our data, LTC Properties, Inc. has a market capitalization of US$1.6b, and pays its CEO total annual compensation worth US$3.4m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$675k. 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$3.6m.
So Wendy Simpson is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
You can see a visual representation of the CEO compensation at LTC Properties, below.
Is LTC Properties, Inc. Growing?
On average over the last three years, LTC Properties, Inc. has grown earnings per share (EPS) by 16% each year (using a line of best fit). In the last year, its revenue changed by just -0.1%.
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.
Has LTC Properties, Inc. Been A Good Investment?
LTC Properties, Inc. has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Wendy Simpson is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling LTC Properties (free visualization of insider trades).
If you want to buy a stock that is better than LTC Properties, this free list of high return, low debt companies is a great place to look.
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.