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How Much Is CBRE Group's (NYSE:CBRE) CEO Getting Paid?

Simply Wall St
·3 mins read

Bob Sulentic has been the CEO of CBRE Group, Inc. (NYSE:CBRE) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether CBRE Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for CBRE Group

How Does Total Compensation For Bob Sulentic Compare With Other Companies In The Industry?

Our data indicates that CBRE Group, Inc. has a market capitalization of US$16b, and total annual CEO compensation was reported as US$13m for the year to December 2019. We note that's an increase of 30% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.0m.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$2.8m. Hence, we can conclude that Bob Sulentic is remunerated higher than the industry median. What's more, Bob Sulentic holds US$27m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$1.0m

US$998k

7%

Other

US$12m

US$9.3m

93%

Total Compensation

US$13m

US$10m

100%

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. CBRE Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at CBRE Group, Inc.'s Growth Numbers

CBRE Group, Inc.'s earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 8.5% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CBRE Group, Inc. Been A Good Investment?

CBRE Group, Inc. has generated a total shareholder return of 24% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As previously discussed, Bob is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth over three years is certainly impressive. We also think investor returns are steady over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for CBRE Group that you should be aware of before investing.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.