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Our Take On Terreno Realty Corporation’s (NYSE:TRNO) CEO Salary

In 2010 W. Baird was appointed CEO of Terreno Realty Corporation (NYSE:TRNO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Terreno Realty

How Does W. Baird’s Compensation Compare With Similar Sized Companies?

According to our data, Terreno Realty Corporation has a market capitalization of US$2.3b, and pays its CEO total annual compensation worth US$1.6m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$783k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.5m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Terreno Realty, below.

NYSE:TRNO CEO Compensation November 27th 18
NYSE:TRNO CEO Compensation November 27th 18

Is Terreno Realty Corporation Growing?

On average over the last three years, Terreno Realty Corporation has grown earnings per share (EPS) by 53% each year. In the last year, its revenue is up 15%.

This demonstrates that the company has been improving recently. A good result. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Terreno Realty Corporation Been A Good Investment?

I think that the total shareholder return of 86%, over three years, would leave most Terreno Realty Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

It looks like Terreno Realty Corporation pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that W. Baird deserves a raise!

Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Terreno Realty insiders are buying or selling shares.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

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 editorial-team@simplywallst.com.

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