Advertisement

How Much Is Lamar Advertising Company (REIT)'s (NASDAQ:LAMR) CEO Getting Paid?

Sean Reilly has been the CEO of Lamar Advertising Company (REIT) (NASDAQ:LAMR) since 2011, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Lamar Advertising Company (REIT) pays its CEO appropriately, considering its funds from operations growth and total shareholder returns.

Check out our latest analysis for Lamar Advertising Company (REIT)

Comparing Lamar Advertising Company (REIT)'s CEO Compensation With the industry

According to our data, Lamar Advertising Company (REIT) has a market capitalization of US$6.7b, and paid its CEO total annual compensation worth US$5.0m over the year to December 2019. Notably, that's a decrease of 11% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$700k.

On examining similar-sized companies in the industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$6.2m. So it looks like Lamar Advertising Company (REIT) compensates Sean Reilly in line with the median for the industry. Moreover, Sean Reilly also holds US$105m worth of Lamar Advertising Company (REIT) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$700k

US$700k

14%

Other

US$4.3m

US$4.9m

86%

Total Compensation

US$5.0m

US$5.6m

100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Lamar Advertising Company (REIT) is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

Lamar Advertising Company (REIT)'s Growth

Lamar Advertising Company (REIT) has seen its funds from operations (FFO) increase by 1.5% per year over the past three years. In the last year, its revenue changed by just 0.3%.

We would prefer it if there was revenue growth, but the modest FFOgrowth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Lamar Advertising Company (REIT) Been A Good Investment?

Lamar Advertising Company (REIT) has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we touched on above, Lamar Advertising Company (REIT) 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. However, FFO and total shareholder return are solid yet uninspiring. We'd say that Sean is remunerated reasonably, but shareholders might be looking for better returns before they agree Sean deserves a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Lamar Advertising Company (REIT) (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.