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Is First Industrial Realty Trust, Inc. (NYSE:FR) Overpaying Its CEO?

Simply Wall St

Peter Baccile has been the CEO of First Industrial Realty Trust, Inc. (NYSE:FR) since 2016. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for First Industrial Realty Trust

How Does Peter Baccile's Compensation Compare With Similar Sized Companies?

Our data indicates that First Industrial Realty Trust, Inc. is worth US$5.0b, and total annual CEO compensation is US$4.0m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$750k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.8m.

A first glance this seems like a real positive for shareholders, since Peter Baccile is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at First Industrial Realty Trust has changed over time.

NYSE:FR CEO Compensation, September 11th 2019

Is First Industrial Realty Trust, Inc. Growing?

Over the last three years First Industrial Realty Trust, Inc. has grown its earnings per share (EPS) by an average of 9.0% per year (using a line of best fit). In the last year, its revenue is up 7.5%.

I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.

Has First Industrial Realty Trust, Inc. Been A Good Investment?

Most shareholders would probably be pleased with First Industrial Realty Trust, Inc. for providing a total return of 55% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It appears that First Industrial Realty Trust, Inc. remunerates its CEO below most similar sized companies.

Peter Baccile receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at First Industrial Realty Trust.

If you want to buy a stock that is better than First Industrial Realty Trust, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.