Chris Marr has been the CEO of CubeSmart (NYSE:CUBE) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Chris Marr's Compensation Compare With Similar Sized Companies?
According to our data, CubeSmart has a market capitalization of US$6.3b, and pays its CEO total annual compensation worth US$4.1m. (This figure is for the year to December 2018). That's a fairly small increase of 6.0% on year before. We think total compensation is more important but we note that the CEO salary is lower, at US$715k. 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.
Most shareholders would consider it a positive that Chris Marr takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at CubeSmart has changed over time.
Is CubeSmart Growing?
Over the last three years CubeSmart has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). It achieved revenue growth of 7.0% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has CubeSmart Been A Good Investment?
With a total shareholder return of 20% over three years, CubeSmart shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
It looks like CubeSmart pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn't mean that Chris Marr is paid too much.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CubeSmart.
If you want to buy a stock that is better than CubeSmart, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.