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Andrew Catsoulis is the CEO of National Storage REIT (ASX:NSR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for National Storage REIT
How Does Andrew Catsoulis's Compensation Compare With Similar Sized Companies?
Our data indicates that National Storage REIT is worth AU$1.1b, and total annual CEO compensation is AU$1.3m. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$900k. We looked at a group of companies with market capitalizations from AU$579m to AU$2.3b, and the median CEO total compensation was AU$1.4m.
So Andrew Catsoulis is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at National Storage REIT, below.
Is National Storage REIT Growing?
Over the last three years National Storage REIT has grown its earnings per share (EPS) by an average of 88% per year (using a line of best fit). In the last year, its revenue is up 15%.
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. It could be important to check this free visual depiction of what analysts expect for the future.
Has National Storage REIT Been A Good Investment?
National Storage REIT has not done too badly by shareholders, with a total return of 8.2%, over three years. 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.
In Summary...
Andrew Catsoulis is paid around the same as most CEOs of similar size companies.
We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. So upon reflection one could argue that the CEO pay is quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at National Storage REIT.