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Stephen Lebovitz became the CEO of CBL & Associates Properties, Inc (NYSE:CBL) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Stephen Lebovitz's Compensation Compare With Similar Sized Companies?
According to our data, CBL & Associates Properties, Inc has a market capitalization of US$234m, and pays its CEO total annual compensation worth US$3.5m. (This number is for the twelve months until December 2018). That's a notable increase of 34% on last year. While we always look at total compensation first, we note that the salary component is less, at US$707k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.1m.
Thus we can conclude that Stephen Lebovitz receives more in total compensation than the median of a group of companies in the same market, and of similar size to CBL & Associates Properties, Inc. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at CBL & Associates Properties has changed from year to year.
Is CBL & Associates Properties, Inc Growing?
On average over the last three years, CBL & Associates Properties, Inc has shrunk earnings per share by 84% each year (measured with a line of best fit). Its revenue is down -8.0% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has CBL & Associates Properties, Inc Been A Good Investment?
Since shareholders would have lost about 82% over three years, some CBL & Associates Properties, Inc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount CBL & Associates Properties, 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.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. This contrasts with the growth in CEO remuneration, year on year. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if CBL & Associates Properties insiders are buying or selling shares.
If you want to buy a stock that is better than CBL & Associates Properties, this free list of high return, low debt companies is a great place to look.
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 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.