Performance at Four Corners Property Trust, Inc. (NYSE:FCPT) has been reasonably good and CEO Bill Lenehan has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11 June 2021. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for Four Corners Property Trust
How Does Total Compensation For Bill Lenehan Compare With Other Companies In The Industry?
At the time of writing, our data shows that Four Corners Property Trust, Inc. has a market capitalization of US$2.2b, and reported total annual CEO compensation of US$2.9m for the year to December 2020. Notably, that’s an increase of 56% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$589k.
For comparison, other companies in the same industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$4.0m. From this we gather that Bill Lenehan is paid around the median for CEOs in the industry. Furthermore, Bill Lenehan directly owns US$12m worth of shares in the company, implying that they are deeply invested in the company’s success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$589k | US$578k | 20% |
| Other | US$2.3m | US$1.3m | 80% |
| Total Compensation | US$2.9m | US$1.9m | 100% |
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Four Corners Property Trust pays out 20% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
NYSE:FCPT CEO Compensation June 5th 2021
Four Corners Property Trust, Inc.’s Growth
Four Corners Property Trust, Inc. has seen its funds from operations (FFO) increase by 9.2% per year over the past three years. Its revenue is up 7.5% over the last year.
We would argue that the improvement in revenue is good, but isn’t particularly impressive, but the modest improvement in FFO is good. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Four Corners Property Trust, Inc. Been A Good Investment?
Boasting a total shareholder return of 42% over three years, Four Corners Property Trust, 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.
In Summary…
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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO compensation is an important area to keep your eyes on, but we’ve also need to pay attention to other attributes of the company. We identified 3 warning signs for Four Corners Property Trust (1 shouldn’t be ignored!) that you should be aware of before investing here.
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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