Advertisement
Canada markets closed
  • S&P/TSX

    21,947.41
    +124.19 (+0.57%)
     
  • S&P 500

    5,127.79
    +63.59 (+1.26%)
     
  • DOW

    38,675.68
    +450.02 (+1.18%)
     
  • CAD/USD

    0.7308
    -0.0006 (-0.08%)
     
  • CRUDE OIL

    77.99
    -0.96 (-1.22%)
     
  • Bitcoin CAD

    86,454.96
    +735.21 (+0.86%)
     
  • CMC Crypto 200

    1,313.36
    +36.38 (+2.85%)
     
  • GOLD FUTURES

    2,310.10
    +0.50 (+0.02%)
     
  • RUSSELL 2000

    2,035.72
    +19.61 (+0.97%)
     
  • 10-Yr Bond

    4.5000
    -0.0710 (-1.55%)
     
  • NASDAQ

    16,156.33
    +315.37 (+1.99%)
     
  • VOLATILITY

    13.49
    -1.19 (-8.11%)
     
  • FTSE

    8,213.49
    +41.34 (+0.51%)
     
  • NIKKEI 225

    38,236.07
    -37.98 (-0.10%)
     
  • CAD/EUR

    0.6787
    -0.0030 (-0.44%)
     

Is STORE Capital Corporation's (NYSE:STOR) CEO Overpaid Relative To Its Peers?

Chris Volk has been the CEO of STORE Capital Corporation (NYSE:STOR) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for STORE Capital

How Does Chris Volk's Compensation Compare With Similar Sized Companies?

Our data indicates that STORE Capital Corporation is worth US$8.2b, and total annual CEO compensation was reported as US$6.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$800k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.5m.

ADVERTISEMENT

So Chris Volk 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.

You can see, below, how CEO compensation at STORE Capital has changed over time.

NYSE:STOR CEO Compensation, February 28th 2020
NYSE:STOR CEO Compensation, February 28th 2020

Is STORE Capital Corporation Growing?

On average over the last three years, STORE Capital Corporation has grown earnings per share (EPS) by 12% each year (using a line of best fit). Its revenue is up 22% over last year.

This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has STORE Capital Corporation Been A Good Investment?

I think that the total shareholder return of 59%, over three years, would leave most STORE Capital Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Chris Volk is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if STORE Capital insiders are buying or selling shares.

If you want to buy a stock that is better than STORE Capital, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.