Peter Carlino became the CEO of Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) in 2013. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Gaming and Leisure Properties
How Does Peter Carlino’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Gaming and Leisure Properties, Inc. has a market cap of US$8.2b, and is paying total annual CEO compensation of US$12m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.8m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.9m.
Thus we can conclude that Peter Carlino receives more in total compensation than the median of a group of companies in the same market, and of similar size to Gaming and Leisure Properties, Inc.. However, this doesn’t necessarily mean the pay 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 Gaming and Leisure Properties has changed from year to year.
Is Gaming and Leisure Properties, Inc. Growing?
Over the last three years Gaming and Leisure Properties, Inc. has grown its earnings per share (EPS) by an average of 3.2% per year (using a line of best fit). In the last year, its revenue is up 15%.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while performance isn’t amazing, we think it really does seem quite respectable. It could be important to check this free visual depiction of what analysts expect for the future.
Has Gaming and Leisure Properties, Inc. Been A Good Investment?
I think that the total shareholder return of 41%, over three years, would leave most Gaming and Leisure Properties, Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at Gaming and Leisure Properties, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying Gaming and Leisure Properties shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.