NYSE:STOR) since 2011, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the funds from operations and shareholder returns of the company.” data-reactid=”28″>Chris Volk has been the CEO of STORE Capital Corporation (NYSE:STOR) since 2011, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the funds from operations and shareholder returns of the company.
Check out our latest analysis for STORE Capital ” data-reactid=”29″>Check out our latest analysis for STORE Capital
Comparing STORE Capital Corporation’s CEO Compensation With the industry
At the time of writing, our data shows that STORE Capital Corporation has a market capitalization of US$6.4b, and reported total annual CEO compensation of US$7.4m for the year to December 2019. That’s a notable increase of 19% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$800k.
In comparison with other companies in the industry with market capitalizations ranging from US$4.0b to US$12b, the reported median CEO total compensation was US$6.0m. This suggests that STORE Capital remunerates its CEO largely in line with the industry average. Furthermore, Chris Volk directly owns US$17m worth of shares in the company, implying that they are deeply invested in the company’s success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$800k | US$800k | 11% |
| Other | US$6.6m | US$5.5m | 89% |
| Total Compensation | US$7.4m | US$6.3m | 100% |
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. It’s interesting to note that STORE Capital allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at STORE Capital Corporation’s Growth Numbers
Over the past three years, STORE Capital Corporation has seen its funds from operations (FFO) grow by 20% per year. It achieved revenue growth of 13% over the last year.
this free visual depiction of what analysts expect for the future.” data-reactid=”54″>Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has STORE Capital Corporation Been A Good Investment?
STORE Capital Corporation has served shareholders reasonably well, with a total return of 16% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
As we touched on above, STORE Capital Corporation is currently paying a compensation that’s close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But FFO growth for the company has been strong over the last three years, though shareholder returns in comparison haven’t been as impressive. Considering overall performance, we’d say the compensation is fair, although stockholders will want to see higher returns moving forward.
5 warning signs for STORE Capital (1 is a bit unpleasant!) that you should be aware of before investing here.” data-reactid=”59″>It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company’s key performance areas. We identified 5 warning signs for STORE Capital (1 is a bit unpleasant!) that you should be aware of before investing here.
this list of interesting companies with high ROE and low debt. ” data-reactid=”60″>Important note: STORE Capital is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”65″>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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