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Should You Worry About Northview Apartment Real Estate Investment Trust's (TSE:NVU.UN) CEO Pay?

Simply Wall St

Todd Cook has been the CEO of Northview Apartment Real Estate Investment Trust (TSE:NVU.UN) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Northview Apartment Real Estate Investment Trust

How Does Todd Cook's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Northview Apartment Real Estate Investment Trust has a market cap of CA$2.1b, and reported total annual CEO compensation of CA$1.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$550k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from CA$1.3b to CA$4.2b, we found the median CEO total compensation was CA$2.8m.

Most shareholders would consider it a positive that Todd Cook takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. 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 Northview Apartment Real Estate Investment Trust, below.

TSX:NVU.UN CEO Compensation, December 5th 2019

Is Northview Apartment Real Estate Investment Trust Growing?

Northview Apartment Real Estate Investment Trust has increased its earnings per share (EPS) by an average of 36% a year, over the last three years (using a line of best fit). Its revenue is up 8.9% over last year.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has Northview Apartment Real Estate Investment Trust Been A Good Investment?

Most shareholders would probably be pleased with Northview Apartment Real Estate Investment Trust for providing a total return of 90% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

It looks like Northview Apartment Real Estate Investment Trust pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Todd Cook deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Northview Apartment Real Estate Investment Trust insiders are buying or selling shares.

If you want to buy a stock that is better than Northview Apartment Real Estate Investment Trust, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.