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Jerry Sweeney became the CEO of Brandywine Realty Trust (NYSE:BDN) in 1994. 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. 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.
How Does Jerry Sweeney's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Brandywine Realty Trust has a market cap of US$1.5b, and reported total annual CEO compensation of US$4.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$742k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.6m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Brandywine Realty Trust stands. Talking in terms of the sector, salary represented approximately 16% of total compensation out of all the companies we analysed, while other remuneration made up 84% of the pie. So it seems like there isn't a significant difference between Brandywine Realty Trust and the broader market, in terms of salary allocation in the overall compensation package.
So Jerry Sweeney is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see, below, how CEO compensation at Brandywine Realty Trust has changed over time.
Is Brandywine Realty Trust Growing?
Brandywine Realty Trust has seen earnings per share (EPS) move positively by an average of 31% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 7.0%.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Brandywine Realty Trust Been A Good Investment?
Given the total loss of 33% over three years, many shareholders in Brandywine Realty Trust are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Jerry Sweeney is close enough to the median pay for a CEO of a similar sized company .
We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Moving away from CEO compensation for the moment, we've identified 3 warning signs for Brandywine Realty Trust that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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