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In 2001 Kenneth Bernstein was appointed CEO of Acadia Realty Trust (NYSE:AKR). 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.
How Does Kenneth Bernstein's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Acadia Realty Trust has a market cap of US$2.4b, and is paying total annual CEO compensation of US$5.1m. (This is based on the year to December 2018). Notably, that's an increase of 14% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$612k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$4.1m.
So Kenneth Bernstein 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.
You can see, below, how CEO compensation at Acadia Realty Trust has changed over time.
Is Acadia Realty Trust Growing?
Acadia Realty Trust has reduced its earnings per share by an average of 29% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 9.3%.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Acadia Realty Trust Been A Good Investment?
Given the total loss of 8.1% over three years, many shareholders in Acadia Realty Trust are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Kenneth Bernstein is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. This doesn't look great when you consider CEO remuneration is up on last year. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Acadia Realty Trust (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.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.