Bill Lenehan became the CEO of Four Corners Property Trust, Inc. (NYSE:FCPT) in 2015, 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 look to assess whether the CEO is appropriately paid, considering recent funds from operations growth and investor returns for Four Corners Property Trust.
View our latest analysis for Four Corners Property Trust
Comparing Four Corners Property Trust, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Four Corners Property Trust, Inc. has a market capitalization of US$1.9b, and reported total annual CEO compensation of US$1.9m for the year to December 2019. Notably, that's a decrease of 31% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$578k.
In comparison with other companies in the industry with market capitalizations ranging from US$1.0b to US$3.2b, the reported median CEO total compensation was US$4.9m. Accordingly, Four Corners Property Trust pays its CEO under the industry median. What's more, Bill Lenehan holds US$8.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$578k | US$525k | 31% |
Other | US$1.3m | US$2.2m | 69% |
Total Compensation | US$1.9m | US$2.7m | 100% |
On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that Four Corners Property Trust pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Four Corners Property Trust, Inc.'s Growth Numbers
Four Corners Property Trust, Inc.'s funds from operations (FFO) grew 7.8% per yearover the last three years. Its revenue is up 6.2% over the last year.
We're not particularly impressed by the revenue growth, but it is good to see modest FFO growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Four Corners Property Trust, Inc. Been A Good Investment?
Four Corners Property Trust, Inc. has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
As we noted earlier, Four Corners Property Trust pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, FFO growth and shareholder returns over the past three years have not impressed us. Therefore, despite CEO compensation being fair by all accounts, shareholders will probably want to see more growth before they decide that Bill deserves a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is concerning) in Four Corners Property Trust we think you should know about.
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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