In 2013 Howard Schwimmer was appointed CEO of Rexford Industrial Realty, Inc. (NYSE:REXR). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Howard Schwimmer's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Rexford Industrial Realty, Inc. has a market cap of US$4.4b, and is paying total annual CEO compensation of US$4.7m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$550k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
So Howard Schwimmer receives a similar amount to the median CEO pay, amongst 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.
You can see a visual representation of the CEO compensation at Rexford Industrial Realty, below.
Is Rexford Industrial Realty, Inc. Growing?
Over the last three years Rexford Industrial Realty, Inc. has grown its earnings per share (EPS) by an average of 8.0% per year (using a line of best fit). It achieved revenue growth of 25% over the last year.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Shareholders might be interested in this free visualization of analyst forecasts.
Has Rexford Industrial Realty, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Rexford Industrial Realty, Inc. for providing a total return of 99% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Howard Schwimmer is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So all things considered I'd venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Rexford Industrial Realty (free visualization of insider trades).
Important note: Rexford Industrial Realty may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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