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Is Bluerock Residential Growth REIT Inc’s (NYSEMKT:BRG) CEO Pay Fair?

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R. Kamfar has been the CEO of Bluerock Residential Growth REIT Inc (NYSEMKT:BRG) since 2008. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Bluerock Residential Growth REIT

How Does R. Kamfar’s Compensation Compare With Similar Sized Companies?

Our data indicates that Bluerock Residential Growth REIT Inc is worth US$272m, and total annual CEO compensation is US$400k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO compensation of that group was US$919k.

A first glance this seems like a real positive for shareholders, since R. Kamfar is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see a visual representation of the CEO compensation at Bluerock Residential Growth REIT, below.

AMEX:BRG CEO Compensation November 5th 18
AMEX:BRG CEO Compensation November 5th 18

Is Bluerock Residential Growth REIT Inc Growing?

On average over the last three years, Bluerock Residential Growth REIT Inc has shrunk earnings per share by 96% each year. Its revenue is up 45% over last year.

As investors, we do are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Bluerock Residential Growth REIT Inc Been A Good Investment?

Since shareholders would have lost about 2.1% over three years, some Bluerock Residential Growth REIT Inc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Bluerock Residential Growth REIT Inc is currently paying its CEO below what is normal for companies of its size.

It’s well worth noting that while R. Kamfar is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. So while shareholders shouldn’t be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. Whatever your view on compensation, you might want to check if insiders are buying or selling Bluerock Residential Growth REIT Inc shares (free trial).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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.