Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
William Trimble has been the CEO of Easterly Government Properties, Inc. (NYSE:DEA) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does William Trimble’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Easterly Government Properties, Inc. has a market cap of US$1.2b, and is paying total annual CEO compensation of US$1.3m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$450k. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$3.4m.
A first glance this seems like a real positive for shareholders, since William Trimble is paid less than the average compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Easterly Government Properties, below.
Is Easterly Government Properties, Inc. Growing?
On average over the last three years, Easterly Government Properties, Inc. has grown earnings per share (EPS) by 10% each year (using a line of best fit). It achieved revenue growth of 21% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Easterly Government Properties, Inc. Been A Good Investment?
Easterly Government Properties, Inc. has generated a total shareholder return of 25% over three years, so most shareholders would 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.
It appears that Easterly Government Properties, Inc. remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest William Trimble is overcompensated.
It’s good to see reasonable payment of the CEO, even while the business improves. But it would be nice if insiders were also buying shares. Shareholders may want to check for free if Easterly Government Properties insiders are buying or selling shares.
If you want to buy a stock that is better than Easterly Government Properties, this free list of high return, low debt companies is a great place to look.
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 email@example.com.