Should You Worry About Brixmor Property Group Inc.’s (NYSE:BRX) CEO Salary Level?
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In 2016 Jim Taylor was appointed CEO of Brixmor Property Group Inc. (NYSE:BRX). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
View our latest analysis for Brixmor Property Group
How Does Jim Taylor’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Brixmor Property Group Inc. has a market cap of US$5.3b, and is paying total annual CEO compensation of US$5.7m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.4m.
So Jim Taylor is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Brixmor Property Group has changed from year to year.
Is Brixmor Property Group Inc. Growing?
On average over the last three years, Brixmor Property Group Inc. has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is down -3.8% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Brixmor Property Group Inc. Been A Good Investment?
Since shareholders would have lost about 9.9% over three years, some Brixmor Property Group Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
Jim Taylor is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Brixmor Property Group shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
