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Is Kimco Realty Corporation’s (NYSE:KIM) CEO Paid Enough Relative To Peers?

David Owens

Conor Flynn has been the CEO of Kimco Realty Corporation (NYSE:KIM) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

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How Does Conor Flynn’s Compensation Compare With Similar Sized Companies?

Our data indicates that Kimco Realty Corporation is worth US$7.0b, and total annual CEO compensation is US$5.6m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$6.4m.

So Conor Flynn is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Kimco Realty has changed over time.

NYSE:KIM CEO Compensation January 22nd 19

Is Kimco Realty Corporation Growing?

On average over the last three years, Kimco Realty Corporation has shrunk earnings per share by 25% each year. Its revenue is up 1.1% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Kimco Realty Corporation Been A Good Investment?

Since shareholders would have lost about 25% over three years, some Kimco Realty Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Conor Flynn 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. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kimco Realty.

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.

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 editorial-team@simplywallst.com.