Is Cedar Realty Trust, Inc. (NYSE:CDR) Overpaying Its CEO?

Bruce Schanzer became the CEO of Cedar Realty Trust, Inc. (NYSE:CDR) in 2011. 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. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Cedar Realty Trust

How Does Bruce Schanzer’s Compensation Compare With Similar Sized Companies?

According to our data, Cedar Realty Trust, Inc. has a market capitalization of US$227m, and paid its CEO total annual compensation worth US$11m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$800k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$100m to US$400m. The median total CEO compensation was US$1.1m.

As you can see, Bruce Schanzer is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Cedar Realty Trust, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Cedar Realty Trust, below.

NYSE:CDR CEO Compensation, December 19th 2019
NYSE:CDR CEO Compensation, December 19th 2019

Is Cedar Realty Trust, Inc. Growing?

Over the last three years Cedar Realty Trust, Inc. has grown its earnings per share (EPS) by an average of 24% per year (using a line of best fit). It saw its revenue drop 4.5% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Cedar Realty Trust, Inc. Been A Good Investment?

Given the total loss of 51% over three years, many shareholders in Cedar Realty Trust, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We compared total CEO remuneration at Cedar Realty Trust, Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. So you may want to check if insiders are buying Cedar Realty Trust shares with their own money (free access).

Important note: Cedar Realty Trust may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.