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How Much is Acadia Realty Trust's (NYSE:AKR) CEO Getting Paid?

Kenneth Bernstein became the CEO of Acadia Realty Trust (NYSE:AKR) in 2001. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Acadia Realty Trust

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$2.2b, and reported total annual CEO compensation of US$5.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$612k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$4.0m.

That means Kenneth Bernstein receives fairly typical remuneration for the CEO of a company that size. 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 Acadia Realty Trust has changed over time.

NYSE:AKR CEO Compensation, February 3rd 2020
NYSE:AKR CEO Compensation, February 3rd 2020

Is Acadia Realty Trust Growing?

Acadia Realty Trust has reduced its earnings per share by an average of 25% a year, over the last three years (measured with a line of best fit). Its revenue is up 13% over last year.

Unfortunately, earnings per share have trended lower over the last three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.

Has Acadia Realty Trust Been A Good Investment?

Since shareholders would have lost about 13% over three years, some Acadia Realty Trust shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Kenneth Bernstein is paid around what is normal the leaders of comparable size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. 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).

If you want to buy a stock that is better than Acadia Realty Trust, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.

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