Paul Pittman became the CEO of Farmland Partners Inc (NYSE:FPI) in 2014. 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 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 Paul Pittman’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Farmland Partners Inc has a market cap of US$232m, and is paying total annual CEO compensation of US$1.1m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$477k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$927k.
So Paul Pittman is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Farmland Partners has changed from year to year.
Is Farmland Partners Inc Growing?
Over the last three years Farmland Partners Inc has shrunk its earnings per share by an average of 1.3% per year. It achieved revenue growth of 17% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Farmland Partners Inc Been A Good Investment?
Since shareholders would have lost about 37% over three years, some Farmland Partners Inc shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Paul Pittman is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shareholders may want to check for free if Farmland Partners insiders are buying or selling shares.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.