R. Kamfar has been the CEO of Bluerock Residential Growth REIT, Inc. (NYSEMKT:BRG) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.
How Does R. Kamfar's Compensation Compare With Similar Sized Companies?
According to our data, Bluerock Residential Growth REIT, Inc. has a market capitalization of US$333m, and paid its CEO total annual compensation worth US$4.8m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$400k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.9m.
As you can see, R. Kamfar is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bluerock Residential Growth REIT, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Bluerock Residential Growth REIT has changed over time.
Is Bluerock Residential Growth REIT, Inc. Growing?
Bluerock Residential Growth REIT, Inc. has reduced its earnings per share by an average of 51% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 29%.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Bluerock Residential Growth REIT, Inc. Been A Good Investment?
Bluerock Residential Growth REIT, Inc. has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We examined the amount Bluerock Residential Growth REIT, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. 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 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. Whatever your view on compensation, you might want to check if insiders are buying or selling Bluerock Residential Growth REIT shares (free trial).
Important note: Bluerock Residential Growth REIT may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.