This article will reflect on the compensation paid to Ken Silver who has served as CEO of CT Real Estate Investment Trust (TSE:CRT.UN) since 2013. This analysis will also assess whether CT Real Estate Investment Trust pays its CEO appropriately, considering its funds from operations growth and total shareholder returns.
Comparing CT Real Estate Investment Trust's CEO Compensation With the industry
Our data indicates that CT Real Estate Investment Trust has a market capitalization of CA$3.6b, and total annual CEO compensation was reported as CA$1.9m for the year to December 2019. That's a notable increase of 19% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$627k.
On comparing similar companies from the same industry with market caps ranging from CA$2.5b to CA$8.1b, we found that the median CEO total compensation was CA$4.0m. In other words, CT Real Estate Investment Trust pays its CEO lower than the industry median. Furthermore, Ken Silver directly owns CA$1.5m worth of shares in the company, implying that they are deeply invested in the company's success.
Talking in terms of the industry, salary represented approximately 32% of total compensation out of all the companies we analyzed, while other remuneration made up 68% of the pie. Although there is a difference in how total compensation is set, CT Real Estate Investment Trust more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at CT Real Estate Investment Trust's Growth Numbers
CT Real Estate Investment Trust has seen its funds from operations (FFO) increase by 4.8% per year over the past three years. It achieved revenue growth of 3.0% over the last year.
We're not particularly impressed by the revenue growth, but the modest improvement in FFO is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has CT Real Estate Investment Trust Been A Good Investment?
With a total shareholder return of 29% over three years, CT Real Estate Investment Trust shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
As previously discussed, Ken is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. At the same time, FFO growth and shareholder returns, though solid, have not been very strong over the last three years. Consequently, despite CEO compensation being reasonable by all accounts, shareholders will likely want to see more growth before they agree to a potential bump.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for CT Real Estate Investment Trust you should be aware of, and 1 of them is a bit concerning.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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