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Michael Cooper has been the CEO of Dream Office Real Estate Investment Trust (TSE:D.UN) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Dream Office Real Estate Investment Trust.
How Does Total Compensation For Michael Cooper Compare With Other Companies In The Industry?
At the time of writing, our data shows that Dream Office Real Estate Investment Trust has a market capitalization of CA$1.2b, and reported total annual CEO compensation of CA$1.5m for the year to December 2019. That's a notable increase of 17% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$500k.
On examining similar-sized companies in the industry with market capitalizations between CA$545m and CA$2.2b, we discovered that the median CEO total compensation of that group was CA$1.6m. From this we gather that Michael Cooper is paid around the median for CEOs in the industry. Furthermore, Michael Cooper directly owns CA$10m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, around 33% of total compensation represents salary and 67% is other remuneration. Although there is a difference in how total compensation is set, Dream Office Real Estate Investment Trust more or less reflects the market in terms of setting the salary. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Dream Office Real Estate Investment Trust's Growth Numbers
Dream Office Real Estate Investment Trust has seen its earnings per share (EPS) increase by 79% a year over the past three years. Its revenue is up 1.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Dream Office Real Estate Investment Trust Been A Good Investment?
Dream Office Real Estate Investment Trust has served shareholders reasonably well, with a total return of 14% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
As we touched on above, Dream Office Real Estate Investment Trust is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, it's admirable that over the last three years, earnings growth for the company has been impressive, though the same can't be said for investor returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Dream Office Real Estate Investment Trust you should be aware of, and 1 of them shouldn't be ignored.
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.
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