Is Alexander’s Inc’s (NYSE:ALX) CEO Paid Enough Relative To Peers?
Steve Roth became the CEO of Alexander’s Inc (NYSE:ALX) in 1995. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Alexander’s
How Does Steve Roth’s Compensation Compare With Similar Sized Companies?
Our data indicates that Alexander’s Inc is worth US$1.7b, and total annual CEO compensation is US$303k. We note that’s an increase of 100% above last year. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$4m.
Most shareholders would consider it a positive that Steve Roth takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Alexander’s has changed from year to year.
Is Alexander’s Inc Growing?
Earnings per share at Alexander’s Inc are much the same as they were three years ago, albeit slightly higher. It achieved revenue growth of 1.5% over the last year.
I would argue that the improvement in revenue isn’t particularly impressive, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.
We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Alexander’s Inc Been A Good Investment?
With a three year total loss of 3.9%, Alexander’s Inc would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Alexander’s Inc is currently paying its CEO below what is normal for companies of its size.
It’s well worth noting that while Steve Roth is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Alexander’s Inc (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past earnings 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.
