Shareholders will probably not be disappointed by the robust results at Healthcare Realty Trust Incorporated (NYSE:HR) recently and they will be keeping this in mind as they go into the AGM on 11 May 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for Healthcare Realty Trust

How Does Total Compensation For Todd Meredith Compare With Other Companies In The Industry?

Our data indicates that Healthcare Realty Trust Incorporated has a market capitalization of US$4.6b, and total annual CEO compensation was reported as US$2.8m for the year to December 2020. That's a notable decrease of 17% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$800k.

In comparison with other companies in the industry with market capitalizations ranging from US$2.0b to US$6.4b, the reported median CEO total compensation was US$5.3m. This suggests that Todd Meredith is paid below the industry median. What's more, Todd Meredith holds US$16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. According to our research, Healthcare Realty Trust has allocated a higher percentage of pay to salary in comparison to the wider industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Healthcare Realty Trust Incorporated's Growth Numbers

Healthcare Realty Trust Incorporated's funds from operations (FFO) grew 14% per yearover the last three years. In the last year, its revenue is up 6.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Healthcare Realty Trust Incorporated Been A Good Investment?

Healthcare Realty Trust Incorporated has generated a total shareholder return of 30% over three years, so most shareholders would 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...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 2 which don't sit too well with us) in Healthcare Realty Trust we think you should know about.

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.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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