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Should You Worry About Urstadt Biddle Properties Inc’s (NYSE:UBA) CEO Pay?

Willing Biddle has been the CEO of Urstadt Biddle Properties Inc (NYSE:UBA) since 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Urstadt Biddle Properties

How Does Willing Biddle’s Compensation Compare With Similar Sized Companies?

Our data indicates that Urstadt Biddle Properties Inc is worth US$747m, and total annual CEO compensation is US$2m. Notably, that’s an increase of 9.2% over the year before. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$2m.

So Willing Biddle is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Urstadt Biddle Properties has changed over time.

NYSE:UBA CEO Compensation November 9th 18
NYSE:UBA CEO Compensation November 9th 18

Is Urstadt Biddle Properties Inc Growing?

Over the last three years Urstadt Biddle Properties Inc has shrunk its earnings per share by an average of 15% per year. It achieved revenue growth of 9.8% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Urstadt Biddle Properties Inc Been A Good Investment?

Urstadt Biddle Properties Inc has generated a total shareholder return of 19% 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.

In Summary…

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

We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We do not think the CEO pay is a problem, but we’d venture the company should look to improve its business metrics (and share price) before paying any more. So you may want to check if insiders are buying Urstadt Biddle Properties Inc shares with their own money (free access).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

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.