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Is Cedar Realty Trust, Inc.'s (NYSE:CDR) CEO Paid Enough Relative To Peers?

Simply Wall St

In 2011 Bruce Schanzer was appointed CEO of Cedar Realty Trust, Inc. (NYSE:CDR). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Cedar Realty Trust

How Does Bruce Schanzer's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Cedar Realty Trust, Inc. has a market cap of US$245m, and reported total annual CEO compensation of US$10.6m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$800k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$1.2m.

Thus we can conclude that Bruce Schanzer receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cedar Realty Trust, 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.

You can see, below, how CEO compensation at Cedar Realty Trust has changed over time.

NYSE:CDR CEO Compensation, October 8th 2019

Is Cedar Realty Trust, Inc. Growing?

On average over the last three years, Cedar Realty Trust, Inc. has shrunk earnings per share by 5.8% each year (measured with a line of best fit). Its revenue is down 4.5% 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 Cedar Realty Trust, Inc. Been A Good Investment?

With a three year total loss of 52%, Cedar Realty Trust, Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Cedar Realty Trust, 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.

Earnings per share have not grown in three years, and the revenue growth fails to impress us. Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Cedar Realty Trust shares (free trial).

If you want to buy a stock that is better than Cedar Realty Trust, 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 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.