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What Does Camden Property Trust's (NYSE:CPT) CEO Pay Reveal?

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Simply Wall St
·4 min read
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This article will reflect on the compensation paid to Ric Campo who has served as CEO of Camden Property Trust (NYSE:CPT) since 1993. This analysis will also look to assess whether the CEO is appropriately paid, considering recent funds from operations growth and investor returns for Camden Property Trust.

Check out our latest analysis for Camden Property Trust

Comparing Camden Property Trust's CEO Compensation With the industry

According to our data, Camden Property Trust has a market capitalization of US$9.9b, and paid its CEO total annual compensation worth US$4.1m over the year to December 2019. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$566k.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$6.9m. This suggests that Ric Campo is paid below the industry median. Moreover, Ric Campo also holds US$22m worth of Camden Property Trust stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$566k

US$549k

14%

Other

US$3.5m

US$3.5m

86%

Total Compensation

US$4.1m

US$4.0m

100%

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Our data reveals that Camden Property Trust allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

A Look at Camden Property Trust's Growth Numbers

Over the past three years, Camden Property Trust has seen its funds from operations (FFO) grow by 6.3% per year. In the last year, its revenue is up 3.9%.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest FFO growth. So there are some positives here, but not enough to earn high praise. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Camden Property Trust Been A Good Investment?

With a total shareholder return of 18% over three years, Camden Property Trust shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As we noted earlier, Camden Property Trust pays its CEO lower than the norm for similar-sized companies belonging to the same industry. But, shareholder returns and FFO growth have been unimpressive recently. So, even though we don't think CEO compensation is too generous, shareholders will likely want to see more growth before they agree that Ric deserves a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Camden Property Trust (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Camden Property Trust, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.