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Is One Liberty Properties, Inc.'s (NYSE:OLP) CEO Salary Justified?

Simply Wall St

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Patrick Callan became the CEO of One Liberty Properties, Inc. (NYSE:OLP) in 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for One Liberty Properties

How Does Patrick Callan's Compensation Compare With Similar Sized Companies?

Our data indicates that One Liberty Properties, Inc. is worth US$570m, and total annual CEO compensation is US$1.8m. (This number is for the twelve months until December 2018). That's a notable increase of 11% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$813k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.7m.

So Patrick Callan receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at One Liberty Properties has changed over time.

NYSE:OLP CEO Compensation, June 29th 2019

Is One Liberty Properties, Inc. Growing?

Over the last three years One Liberty Properties, Inc. has shrunk its earnings per share by an average of 5.8% per year (measured with a line of best fit). In the last year, its revenue is up 4.6%.

Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.

Has One Liberty Properties, Inc. Been A Good Investment?

Most shareholders would probably be pleased with One Liberty Properties, Inc. for providing a total return of 50% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Patrick Callan is paid around the same as most CEOs of similar size companies.

We're not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at One Liberty Properties.

If you want to buy a stock that is better than One Liberty Properties, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.