U.S. Markets closed

Is Arbor Realty Trust Inc’s (NYSE:ABR) CEO Pay Justified?

Ivan Kaufman has been the CEO of Arbor Realty Trust Inc (NYSE:ABR) since 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Arbor Realty Trust

How Does Ivan Kaufman’s Compensation Compare With Similar Sized Companies?

Our data indicates that Arbor Realty Trust Inc is worth US$1.2b, and total annual CEO compensation is US$9m. That’s a notable increase of 61% on last year. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2m.

As you can see, Ivan Kaufman is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Arbor Realty Trust Inc is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at Arbor Realty Trust has changed over time.

NYSE:ABR CEO Compensation November 2nd 18

Is Arbor Realty Trust Inc Growing?

Arbor Realty Trust Inc has increased its earnings per share (EPS) by an average of 5.5% a year, over the last three years It achieved revenue growth of 16% over the last year.

I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. So while performance isn’t amazing, we think it really does seem quite respectable.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Arbor Realty Trust Inc Been A Good Investment?

I think that the total shareholder return of 150%, over three years, would leave most Arbor Realty Trust Inc shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared total CEO remuneration at Arbor Realty Trust Inc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Arbor Realty Trust Inc shares with their own money (free access).

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.