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Is Weingarten Realty Investors's (NYSE:WRI) CEO Paid Enough Relative To Peers?

Simply Wall St

In 2001 Drew Alexander was appointed CEO of Weingarten Realty Investors (NYSE:WRI). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Weingarten Realty Investors

How Does Drew Alexander's Compensation Compare With Similar Sized Companies?

According to our data, Weingarten Realty Investors has a market capitalization of US$4.2b, and paid its CEO total annual compensation worth US$4.8m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$700k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.

So Drew Alexander is paid around the average of 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 Weingarten Realty Investors, below.

NYSE:WRI CEO Compensation, November 6th 2019

Is Weingarten Realty Investors Growing?

Over the last three years Weingarten Realty Investors has grown its earnings per share (EPS) by an average of 11% per year (using a line of best fit). In the last year, its revenue is down 8.8%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.

Has Weingarten Realty Investors Been A Good Investment?

With a total shareholder return of 12% over three years, Weingarten Realty Investors shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Drew Alexander is paid around the same as most CEOs of similar size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying Weingarten Realty Investors shares with their own money (free access).

If you want to buy a stock that is better than Weingarten Realty Investors, 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.