Conor Flynn became the CEO of Kimco Realty Corporation (NYSE:KIM) in 2016. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Conor Flynn's Compensation Compare With Similar Sized Companies?
Our data indicates that Kimco Realty Corporation is worth US$8.6b, and total annual CEO compensation was reported as US$5.7m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO total compensation was US$6.5m.
So Conor Flynn receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at Kimco Realty has changed from year to year.
Is Kimco Realty Corporation Growing?
On average over the last three years, Kimco Realty Corporation has shrunk earnings per share by 2.4% each year (measured with a line of best fit). Its revenue is down 4.1% over last year.
The lack of earnings per share growth in the last three years is unimpressive. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kimco Realty Corporation Been A Good Investment?
Since shareholders would have lost about 2.1% over three years, some Kimco Realty Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Conor Flynn is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Kimco Realty shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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