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Is Griffin Industrial Realty, Inc.'s (NASDAQ:GRIF) CEO Paid At A Competitive Rate?

Simply Wall St

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Mike Gamzon has been the CEO of Griffin Industrial Realty, Inc. (NASDAQ:GRIF) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for Griffin Industrial Realty

How Does Mike Gamzon's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Griffin Industrial Realty, Inc. has a market cap of US$196m, and is paying total annual CEO compensation of US$653k. (This figure is for the year to November 2018). While we always look at total compensation first, we note that the salary component is less, at US$519k. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$1.2m.

A first glance this seems like a real positive for shareholders, since Mike Gamzon is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Griffin Industrial Realty, below.

NasdaqGM:GRIF CEO Compensation, July 4th 2019

Is Griffin Industrial Realty, Inc. Growing?

Over the last three years Griffin Industrial Realty, Inc. has shrunk its earnings per share by an average of 22% per year (measured with a line of best fit). Its revenue is down -23% over last year.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Griffin Industrial Realty, Inc. Been A Good Investment?

Griffin Industrial Realty, Inc. has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Griffin Industrial Realty, Inc. is currently paying its CEO below what is normal for companies of its size.

Mike Gamzon is remunerated more modestly than is a normal at similar sized companies. However, the earnings per share are not moving in the right direction, and the returns to shareholders could have been better. We would like to see EPS growth from the business, although we wouldn't say the CEO pay is high. Whatever your view on compensation, you might want to check if insiders are buying or selling Griffin Industrial Realty shares (free trial).

Important note: Griffin 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.

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.