Victor Coleman became the CEO of Hudson Pacific Properties, Inc. (NYSE:HPP) in 2010. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Victor Coleman's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Hudson Pacific Properties, Inc. has a market cap of US$5.3b, and reported total annual CEO compensation of US$6.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$825k. 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$4.0b to US$12b. The median total CEO compensation was US$6.9m.
So Victor Coleman 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.
You can see a visual representation of the CEO compensation at Hudson Pacific Properties, below.
Is Hudson Pacific Properties, Inc. Growing?
Hudson Pacific Properties, Inc. has increased its earnings per share (EPS) by an average of 28% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 6.1%.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Hudson Pacific Properties, Inc. Been A Good Investment?
Hudson Pacific Properties, Inc. has served shareholders reasonably well, with a total return of 15% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Victor Coleman is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hudson Pacific Properties (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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