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In 2013 Howard Schwimmer was appointed CEO of Rexford Industrial Realty, Inc. (NYSE:REXR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
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$3.2b, and is paying total annual CEO compensation of US$3.8m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$550k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$4.8m.
So Howard Schwimmer 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 Rexford Industrial Realty has changed from year to year.
Is Rexford Industrial Realty, Inc. Growing?
On average over the last three years, Rexford Industrial Realty, Inc. has grown earnings per share (EPS) by 51% each year (using a line of best fit). Its revenue is up 36% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Rexford Industrial Realty, Inc. Been A Good Investment?
I think that the total shareholder return of 123%, over three years, would leave most Rexford Industrial Realty, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Howard Schwimmer is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rexford Industrial Realty.
If you want to buy a stock that is better than Rexford Industrial Realty, this free list of high return, low debt companies is a great place to look.
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 email@example.com.