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William Trimble has been the CEO of Easterly Government Properties, Inc. (NYSE:DEA) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Easterly Government Properties pays its CEO appropriately, considering its funds from operations growth and total shareholder returns.
How Does Total Compensation For William Trimble Compare With Other Companies In The Industry?
According to our data, Easterly Government Properties, Inc. has a market capitalization of US$1.9b, and paid its CEO total annual compensation worth US$3.8m over the year to December 2019. That's a notable increase of 54% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$725k.
On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$4.6m. From this we gather that William Trimble is paid around the median for CEOs in the industry. What's more, William Trimble holds US$2.0m worth of shares in the company in their own name.
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. It's interesting to note that Easterly Government Properties pays out a greater portion of remuneration through salary, compared to the industry. 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 Easterly Government Properties, Inc.'s Growth Numbers
Easterly Government Properties, Inc.'s funds from operations (FFO) grew 18% per yearover the last three years. It achieved revenue growth of 15% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Easterly Government Properties, Inc. Been A Good Investment?
With a total shareholder return of 21% over three years, Easterly Government Properties, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
As we touched on above, Easterly Government Properties, Inc. 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. But FFO growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. As a result of these considerations, we would suggest the compensation is reasonable, but looking ahead shareholders will likely want to see healthier returns.
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. That's why we did our research, and identified 3 warning signs for Easterly Government Properties (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.
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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