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How Much Did Douglas Emmett, Inc.'s (NYSE:DEI) CEO Pocket Last Year?

Simply Wall St
·3 mins read

Jordan Kaplan became the CEO of Douglas Emmett, Inc. (NYSE:DEI) in 2005. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Douglas Emmett

How Does Jordan Kaplan's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Douglas Emmett, Inc. has a market cap of US$8.7b, and reported total annual CEO compensation of US$8.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. 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$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.4m.

It would therefore appear that Douglas Emmett, Inc. pays Jordan Kaplan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Douglas Emmett, below.

NYSE:DEI CEO Compensation, February 10th 2020
NYSE:DEI CEO Compensation, February 10th 2020

Is Douglas Emmett, Inc. Growing?

Over the last three years Douglas Emmett, Inc. has grown its earnings per share (EPS) by an average of 8.2% per year (using a line of best fit). In the last year, its revenue is up 6.5%.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has Douglas Emmett, Inc. Been A Good Investment?

Douglas Emmett, Inc. has served shareholders reasonably well, with a total return of 18% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared total CEO remuneration at Douglas Emmett, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. Whatever your view on compensation, you might want to check if insiders are buying or selling Douglas Emmett shares (free trial).

Important note: Douglas Emmett may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.