Steve Roth has been the CEO of Vornado Realty Trust (NYSE:VNO) since 2013. First, this article will compare CEO compensation with compensation at other large companies. Next, we’ll consider growth that the business demonstrates. 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.
How Does Steve Roth’s Compensation Compare With Similar Sized Companies?
According to our data, Vornado Realty Trust has a market capitalization of US$14b, and pays its CEO total annual compensation worth US$10m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.
So Steve Roth receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Vornado Realty Trust has changed from year to year.
Is Vornado Realty Trust Growing?
Vornado Realty Trust has reduced its earnings per share by an average of 33% a year, over the last three years. It saw its revenue drop -3.4% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Vornado Realty Trust Been A Good Investment?
Given the total loss of 0.7% over three years, many shareholders in Vornado Realty Trust are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Steve Roth is paid around the same as most CEOs of large companies.
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it’s wise for the company to pay any more, before returns improve.
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 firstname.lastname@example.org.