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Is R&R Real Estate Investment Trust's (CVE:RRR.UN) CEO Paid Enough Relative To Peers?

Simply Wall St

Michael Klingher is the CEO of R&R Real Estate Investment Trust (CVE:RRR.UN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

Check out our latest analysis for R&R Real Estate Investment Trust

How Does Michael Klingher's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that R&R Real Estate Investment Trust has a market cap of CA$26m, and reported total annual CEO compensation of US$150k for the year to December 2018. Notably, the salary of US$150k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$261m, and the median CEO total compensation was CA$211k.

So Michael Klingher 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.

You can see a visual representation of the CEO compensation at R&R Real Estate Investment Trust, below.

TSXV:RRR.UN CEO Compensation, January 22nd 2020

Is R&R Real Estate Investment Trust Growing?

R&R Real Estate Investment Trust has reduced its earnings per share by an average of 47% a year, over the last three years (measured with a line of best fit). Its revenue is up 44% over last year.

The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has R&R Real Estate Investment Trust Been A Good Investment?

Since shareholders would have lost about 9.5% over three years, some R&R Real Estate Investment Trust shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Michael Klingher is close enough to the median pay for a CEO of a similar sized company .

We would like to see somewhat stronger per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. Shareholders may want to check for free if R&R Real Estate Investment Trust insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.