Does Liberty Property Trust’s (NYSE:LPT) CEO Pay Compare Well With Peers?
Bill Hankowsky became the CEO of Liberty Property Trust (NYSE:LPT) in 2003. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Liberty Property Trust
How Does Bill Hankowsky’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Liberty Property Trust has a market cap of US$6.7b, and is paying total annual CEO compensation of US$5m. That’s below the compensation, last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12.0b. The median total CEO compensation was US$7m.
A first glance this seems like a real positive for shareholders, since Bill Hankowsky is paid less than the average compensation paid by similar sized companies. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Liberty Property Trust has changed from year to year.
Is Liberty Property Trust Growing?
Over the last three years, Liberty Property Trust has not seen its earnings per share change much, though they have improved slightly. Its revenue is up 20% over last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn’t bad, either. Although we’ll stop short of calling the stock a top performer, we think the company has potential.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Liberty Property Trust Been A Good Investment?
I think that the total shareholder return of 54%, over three years, would leave most Liberty Property Trust shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
It appears that Liberty Property Trust remunerates its CEO below most similar sized companies.
Bill Hankowsky is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Liberty Property Trust (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.
