Is CT Real Estate Investment Trust's (TSE:CRT.UN) CEO Paid At A Competitive Rate?

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Ken Silver became the CEO of CT Real Estate Investment Trust (TSE:CRT.UN) in 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for CT Real Estate Investment Trust

How Does Ken Silver's Compensation Compare With Similar Sized Companies?

According to our data, CT Real Estate Investment Trust has a market capitalization of CA$3.2b, and pays its CEO total annual compensation worth CA$1.6m. (This is based on the year to December 2018). That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at CA$609k. We looked at a group of companies with market capitalizations from CA$1.3b to CA$4.2b, and the median CEO total compensation was CA$3.1m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at CT Real Estate Investment Trust has changed over time.

TSX:CRT.UN CEO Compensation, June 11th 2019
TSX:CRT.UN CEO Compensation, June 11th 2019

Is CT Real Estate Investment Trust Growing?

Over the last three years CT Real Estate Investment Trust has grown its earnings per share (EPS) by an average of 1.3% per year (using a line of best fit). Its revenue is up 6.4% over last year.

I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Shareholders might be interested in this free visualization of analyst forecasts.

Has CT Real Estate Investment Trust Been A Good Investment?

With a total shareholder return of 14% over three years, CT Real Estate Investment Trust shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

CT Real Estate Investment Trust is currently paying its CEO below what is normal for companies of its size.

Ken Silver is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. So shareholders may not be elated, but they shouldn't be worried about the CEO compensation, either. Whatever your view on compensation, you might want to check if insiders are buying or selling CT Real Estate Investment Trust shares (free trial).

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.

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.

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