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Lou Haddad has been the CEO of Armada Hoffler Properties, Inc. (NYSE:AHH) since 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Lou Haddad’s Compensation Compare With Similar Sized Companies?
Our data indicates that Armada Hoffler Properties, Inc. is worth US$1.0b, and total annual CEO compensation is US$1.1m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$634k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO compensation of that group was US$2.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Armada Hoffler Properties, below.
Is Armada Hoffler Properties, Inc. Growing?
Armada Hoffler Properties, Inc. has reduced its earnings per share by an average of 29% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -34%.
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. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Armada Hoffler Properties, Inc. Been A Good Investment?
I think that the total shareholder return of 68%, over three years, would leave most Armada Hoffler Properties, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It appears that Armada Hoffler Properties, Inc. remunerates its CEO below most similar sized companies.
Lou Haddad receives relatively low remuneration compared to similar sized companies. And while the company isn’t growing earnings per share, total returns have been pleasing. We would like to see EPS growth, but in our view it seems the CEO is remunerated reasonably. So you may want to check if insiders are buying Armada Hoffler Properties shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.