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Under the guidance of CEO Bob Sulentic, CBRE Group, Inc. (NYSE:CBRE) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 19 May 2021. However, some shareholders may still want to keep CEO compensation within reason.
How Does Total Compensation For Bob Sulentic Compare With Other Companies In The Industry?
At the time of writing, our data shows that CBRE Group, Inc. has a market capitalization of US$28b, and reported total annual CEO compensation of US$12m for the year to December 2020. We note that's a decrease of 11% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$249k.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$2.5m. Hence, we can conclude that Bob Sulentic is remunerated higher than the industry median. Moreover, Bob Sulentic also holds US$56m worth of CBRE Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Talking in terms of the industry, salary represented approximately 29% of total compensation out of all the companies we analyzed, while other remuneration made up 71% of the pie. CBRE Group has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at CBRE Group, Inc.'s Growth Numbers
Over the past three years, CBRE Group, Inc. has seen its earnings per share (EPS) grow by 6.3% per year. It saw its revenue drop 3.1% over the last year.
We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has CBRE Group, Inc. Been A Good Investment?
Most shareholders would probably be pleased with CBRE Group, Inc. for providing a total return of 78% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
CBRE Group prefers rewarding its CEO through non-salary benefits. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for CBRE Group that investors should look into moving forward.
Switching gears from CBRE Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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