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Does Douglas Emmett, Inc.’s (NYSE:DEI) CEO Salary Compare Well With Others?

Jordan Kaplan has been the CEO of Douglas Emmett, Inc. (NYSE:DEI) since 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

View our latest analysis for Douglas Emmett

How Does Jordan Kaplan’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Douglas Emmett, Inc. has a market cap of US$7.0b, and is paying total annual CEO compensation of US$8.7m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$6.9m.

So Jordan Kaplan receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Douglas Emmett has changed over time.

NYSE:DEI CEO Compensation December 18th 18
NYSE:DEI CEO Compensation December 18th 18

Is Douglas Emmett, Inc. Growing?

On average over the last three years, Douglas Emmett, Inc. has grown earnings per share (EPS) by 20% each year. Its revenue is up 8.2% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Douglas Emmett, Inc. Been A Good Investment?

With a total shareholder return of 23% over three years, Douglas Emmett, Inc. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Remuneration for Jordan Kaplan is close enough to the median pay for a CEO of a similar sized company .

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Douglas Emmett (free visualization of insider trades).

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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 editorial-team@simplywallst.com.

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