We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Sun Communities, Inc.'s (NYSE:SUI) CEO For Now

CEO Gary Shiffman has done a decent job of delivering relatively good performance at Sun Communities, Inc. (NYSE:SUI) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 19 May 2021. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Sun Communities

Comparing Sun Communities, Inc.'s CEO Compensation With the industry

Our data indicates that Sun Communities, Inc. has a market capitalization of US$19b, and total annual CEO compensation was reported as US$11m for the year to December 2020. Notably, that's an increase of 40% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$521k.

For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$7.8m. This suggests that Gary Shiffman is paid more than the median for the industry. Moreover, Gary Shiffman also holds US$236m worth of Sun Communities stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Interestingly, the company has chosen to go down an unconventional route in that it pays a smaller salary to Gary Shiffman as compared to non-salary compensation over the one-year period examined. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Sun Communities, Inc.'s Growth Numbers

Over the past three years, Sun Communities, Inc. has seen its funds from operations (FFO) grow by 17% per year. In the last year, its revenue is up 19%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sun Communities, Inc. Been A Good Investment?

Boasting a total shareholder return of 88% over three years, Sun Communities, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Sun Communities prefers rewarding its CEO through non-salary benefits. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Sun Communities (1 can't be ignored!) that you should be aware of before investing here.

Switching gears from Sun Communities, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.
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