Steve Tanger has been the CEO of Tanger Factory Outlet Centers Inc (NYSE:SKT) since 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 Steve Tanger’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Tanger Factory Outlet Centers Inc has a market cap of US$2.3b, and is paying total annual CEO compensation of US$7.0m. That’s below the compensation, last year. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$3.6m.
It would therefore appear that Tanger Factory Outlet Centers Inc pays Steve Tanger more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Tanger Factory Outlet Centers has changed from year to year.
Is Tanger Factory Outlet Centers Inc Growing?
Tanger Factory Outlet Centers Inc has reduced its earnings per share by an average of 41% a year, over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.
Has Tanger Factory Outlet Centers Inc Been A Good Investment?
With a three year total loss of 20%, Tanger Factory Outlet Centers Inc would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared total CEO remuneration at Tanger Factory Outlet Centers Inc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously!
Of course Tanger Factory Outlet Centers may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.
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.