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Does Mid-America Apartment Communities' (NYSE:MAA) CEO Salary Compare Well With Industry Peers?

Simply Wall St
·4 min read

H. Bolton has been the CEO of Mid-America Apartment Communities, Inc. (NYSE:MAA) since 2001, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Mid-America Apartment Communities pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Mid-America Apartment Communities

Comparing Mid-America Apartment Communities, Inc.'s CEO Compensation With the industry

According to our data, Mid-America Apartment Communities, Inc. has a market capitalization of US$14b, and paid its CEO total annual compensation worth US$5.7m over the year to December 2019. That's a notable increase of 23% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$813k.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$7.2m. This suggests that Mid-America Apartment Communities remunerates its CEO largely in line with the industry average. What's more, H. Bolton holds US$33m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$813k

US$775k

14%

Other

US$4.9m

US$3.9m

86%

Total Compensation

US$5.7m

US$4.7m

100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. There isn't a significant difference between Mid-America Apartment Communities and the broader market, in terms of salary allocation in the overall compensation package. 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

Mid-America Apartment Communities, Inc.'s Growth

Over the past three years, Mid-America Apartment Communities, Inc. has seen its earnings per share (EPS) grow by 11% per year. Its revenue is up 3.7% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Mid-America Apartment Communities, Inc. Been A Good Investment?

With a total shareholder return of 25% over three years, Mid-America Apartment Communities, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we touched on above, Mid-America Apartment Communities, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But earnings growth over the last three years has been impressive, although the same cannot be said for shareholder returns. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Mid-America Apartment Communities (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Switching gears from Mid-America Apartment Communities, 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.