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Is Urban Edge Properties's (NYSE:UE) CEO Overpaid Relative To Its Peers?

Simply Wall St

In 2014 Jeff Olson was appointed CEO of Urban Edge Properties (NYSE:UE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Urban Edge Properties

How Does Jeff Olson's Compensation Compare With Similar Sized Companies?

Our data indicates that Urban Edge Properties is worth US$2.2b, and total annual CEO compensation is US$4.7m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.

So Jeff Olson 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.

The graphic below shows how CEO compensation at Urban Edge Properties has changed from year to year.

NYSE:UE CEO Compensation, August 21st 2019

Is Urban Edge Properties Growing?

Urban Edge Properties has reduced its earnings per share by an average of 8.6% a year, over the last three years (measured with a line of best fit). Its revenue is up 5.1% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Urban Edge Properties Been A Good Investment?

With a three year total loss of 33%, Urban Edge Properties would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Urban Edge Properties (free visualization of insider trades).

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

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.