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Is Camden Property Trust's (NYSE:CPT) CEO Pay Justified?

Simply Wall St

Ric Campo has been the CEO of Camden Property Trust (NYSE:CPT) since 1993. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Camden Property Trust

How Does Ric Campo's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Camden Property Trust has a market cap of US$10b, and is paying total annual CEO compensation of US$4.0m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$549k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).

Most shareholders would consider it a positive that Ric Campo takes less in total compensation than the CEOs of most other large 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.

You can see, below, how CEO compensation at Camden Property Trust has changed over time.

NYSE:CPT CEO Compensation, August 8th 2019

Is Camden Property Trust Growing?

On average over the last three years, Camden Property Trust has shrunk earnings per share by 35% each year (measured with a line of best fit). Its revenue is up 6.7% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Camden Property Trust Been A Good Investment?

I think that the total shareholder return of 40%, over three years, would leave most Camden Property Trust shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It looks like Camden Property Trust pays its CEO less than the average at large companies.

Ric Campo receives relatively low remuneration compared to most large companies. And while the company isn't growing earnings per share, total returns have been pleasing. Although we could see higher EPS growth, we'd argue the remuneration is not an issue, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Camden Property Trust shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.