Yahoo Finance How Much Did iStar Inc.'s (NYSE:STAR) CEO Pocket Last Year?
In 1997 Jay Sugarman was appointed CEO of iStar Inc. (NYSE:STAR). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for iStar
How Does Jay Sugarman's Compensation Compare With Similar Sized Companies?
Our data indicates that iStar Inc. is worth US$814m, and total annual CEO compensation was reported as US$6.0m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.6m.
Thus we can conclude that Jay Sugarman receives more in total compensation than the median of a group of companies in the same market, and of similar size to iStar Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at iStar has changed from year to year.
Is iStar Inc. Growing?
On average over the last three years, iStar Inc. has grown earnings per share (EPS) by 7.3% each year (using a line of best fit). Its revenue is down 40% over last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but I'm happy with the EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Shareholders might be interested in this free visualization of analyst forecasts.
Has iStar Inc. Been A Good Investment?
iStar Inc. has generated a total shareholder return of 27% 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.
In Summary...
We compared the total CEO remuneration paid by iStar Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. Shareholders may want to check for free if iStar insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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