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Should You Worry About Farmland Partners Inc.'s (NYSE:FPI) CEO Pay Cheque?

Simply Wall St

In 2014 Paul Pittman was appointed CEO of Farmland Partners Inc. (NYSE:FPI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

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Check out our latest analysis for Farmland Partners

How Does Paul Pittman's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Farmland Partners Inc. has a market cap of US$218m, and is paying total annual CEO compensation of US$1.1m. (This figure is for the year to December 2018). That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$477k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.

So Paul Pittman 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 Farmland Partners has changed from year to year.

NYSE:FPI CEO Compensation, May 17th 2019

Is Farmland Partners Inc. Growing?

Over the last three years Farmland Partners Inc. has grown its earnings per share (EPS) by an average of 17% per year (using a line of best fit). Its revenue is up 11% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Farmland Partners Inc. Been A Good Investment?

With a three year total loss of 35%, Farmland Partners Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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

We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Farmland Partners.

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.