Our Take On Global Self Storage's (NASDAQ:SELF) CEO Salary

Mark Winmill became the CEO of Global Self Storage, Inc. (NASDAQ:SELF) in 2012, 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 assess whether Global Self Storage pays its CEO appropriately, considering its funds from operations growth and total shareholder returns.

See our latest analysis for Global Self Storage

Comparing Global Self Storage, Inc.'s CEO Compensation With the industry

Our data indicates that Global Self Storage, Inc. has a market capitalization of US$37m, and total annual CEO compensation was reported as US$440k for the year to December 2019. Notably, that's a decrease of 15% over the year before. We note that the salary portion, which stands at US$337.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$942k. In other words, Global Self Storage pays its CEO lower than the industry median. What's more, Mark Winmill holds US$482k worth of shares in the company in their own name.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Global Self Storage pays out 77% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Global Self Storage, Inc.'s Growth Numbers

Global Self Storage, Inc.'s funds from operations (FFO) grew 15% per yearover the last three years. It achieved revenue growth of 6.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Global Self Storage, Inc. Been A Good Investment?

With a total shareholder return of 1.2% over three years, Global Self Storage, Inc. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, Mark is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Meanwhile, FFO growth has been rock solid for the past three years. However, shareholder returns have failed to show the same level of growth. Shareholder returns could be better but we're pleased with the positive FFO growth. As a result of these considerations, CEO compensation seems quite appropriate.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 5 warning signs for Global Self Storage (of which 2 make us uncomfortable!) 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.

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