Peter Carlino became the CEO of Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) in 2013, and we think it’s a good time to look at the executive’s compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Gaming and Leisure Properties
Comparing Gaming and Leisure Properties, Inc.’s CEO Compensation With the industry
Our data indicates that Gaming and Leisure Properties, Inc. has a market capitalization of US$7.9b, and total annual CEO compensation was reported as US$11m for the year to December 2019. Notably, that’s a decrease of 8.2% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.8m.
On examining similar-sized companies in the industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$5.9m. Hence, we can conclude that Peter Carlino is remunerated higher than the industry median. Moreover, Peter Carlino also holds US$406m worth of Gaming and Leisure Properties stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. There isn’t a significant difference between Gaming and Leisure Properties and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.
A Look at Gaming and Leisure Properties, Inc.’s Growth Numbers
Gaming and Leisure Properties, Inc.’s earnings per share (EPS) grew 2.4% per year over the last three years. It saw its revenue drop 1.1% over the last year.
We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Gaming and Leisure Properties, Inc. Been A Good Investment?
With a total shareholder return of 17% over three years, Gaming and Leisure 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.
As we noted earlier, Gaming and Leisure Properties pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the business isn’t growing earnings per share, and the returns to shareholders haven’t been wonderful. We’d stop short of saying CEO pay is inappropriate, but we’d like to see healthier business growth from the company, moving forward.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That’s why we did our research, and identified 3 warning signs for Gaming and Leisure Properties (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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