Kenneth Bernstein became the CEO of Acadia Realty Trust (NYSE:AKR) in 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does Kenneth Bernstein’s Compensation Compare With Similar Sized Companies?
Our data indicates that Acadia Realty Trust is worth US$2.4b, and total annual CEO compensation is US$5.1m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$612k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.1m.
That means Kenneth Bernstein receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Acadia Realty Trust has changed over time.
Is Acadia Realty Trust Growing?
On average over the last three years, Acadia Realty Trust has shrunk earnings per share by 27% each year (measured with a line of best fit). Its revenue is up 8.2% over last year.
Few shareholders would be pleased to read that earnings per share are lower over 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.
Has Acadia Realty Trust Been A Good Investment?
With a three year total loss of 17%, Acadia Realty Trust would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Remuneration for Kenneth Bernstein is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Acadia Realty Trust.
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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