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Victor Coleman became the CEO of Hudson Pacific Properties, Inc. (NYSE:HPP) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Victor Coleman’s Compensation Compare With Similar Sized Companies?
Our data indicates that Hudson Pacific Properties, Inc. is worth US$5.1b, and total annual CEO compensation is US$6.0m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$725k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO compensation of that group was US$6.4m.
So Victor Coleman receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Hudson Pacific Properties has changed from year to year.
Is Hudson Pacific Properties, Inc. Growing?
Over the last three years Hudson Pacific Properties, Inc. has grown its earnings per share (EPS) by an average of 99% per year (using a line of best fit). Its revenue is up 1.9% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Hudson Pacific Properties, Inc. Been A Good Investment?
Boasting a total shareholder return of 57% over three years, Hudson Pacific Properties, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Victor Coleman is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Hudson Pacific Properties insiders are buying or selling shares.
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.
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 email@example.com.