Jim Mastandrea became the CEO of Whitestone REIT (NYSE:WSR) in 2006. 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 process should give us an idea about how appropriately the CEO is paid.
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How Does Jim Mastandrea’s Compensation Compare With Similar Sized Companies?
According to our data, Whitestone REIT has a market capitalization of US$525m, and pays its CEO total annual compensation worth US$1.4m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$400k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO compensation of that group was US$1.6m.
So Jim Mastandrea receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Whitestone REIT has changed over time.
Is Whitestone REIT Growing?
On average over the last three years, Whitestone REIT has shrunk earnings per share by 4.0% each year. It achieved revenue growth of 12% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. 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 Whitestone REIT Been A Good Investment?
Most shareholders would probably be pleased with Whitestone REIT for providing a total return of 68% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Jim Mastandrea is paid around what is normal the leaders of comparable size companies.
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can’t see a reason to suggest the pay is inappropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Whitestone REIT.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.