In 2013 Joey Agree was appointed CEO of Agree Realty Corporation (NYSE:ADC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.
How Does Joey Agree’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Agree Realty Corporation has a market cap of US$2.8b, and is paying total annual CEO compensation of US$4.9m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$610k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.1m.
So Joey Agree is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Agree Realty has changed over time.
Is Agree Realty Corporation Growing?
On average over the last three years, Agree Realty Corporation has shrunk earnings per share by 3.9% each year (measured with a line of best fit). It achieved revenue growth of 33% over the last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching.
Has Agree Realty Corporation Been A Good Investment?
Most shareholders would probably be pleased with Agree Realty Corporation for providing a total return of 56% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Joey Agree is paid around the same as most CEOs of similar size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I’d venture that the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Agree Realty shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at email@example.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.