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Is Acadia Realty Trust’s (NYSE:AKR) CEO Incentives Align With Yours?

Kenneth Bernstein became the CEO of Acadia Realty Trust (NYSE:AKR) in 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Acadia Realty Trust

How Does Kenneth Bernstein’s Compensation Compare With Similar Sized Companies?

According to our data, Acadia Realty Trust has a market capitalization of US$2.4b, and pays its CEO total annual compensation worth US$5m. That’s below the compensation, last year. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m.

So Kenneth Bernstein receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Acadia Realty Trust, below.

NYSE:AKR CEO Compensation November 6th 18

Is Acadia Realty Trust Growing?

Acadia Realty Trust has reduced its earnings per share by an average of 21% a year, over the last three years. It achieved revenue growth of 9.9% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Acadia Realty Trust Been A Good Investment?

Since shareholders would have lost about 4.9% over three years, some Acadia Realty Trust shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Remuneration for Kenneth Bernstein is close enough to the median pay for a CEO of a similar sized company .

After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it’s wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Acadia Realty Trust shares (free trial).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.