Why Pro Real Estate Investment Trust’s (TSE:PRV.UN) CEO Pay Matters To You

Jim Beckerleg has been the CEO of Pro Real Estate Investment Trust (TSE:PRV.UN) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Pro Real Estate Investment Trust

How Does Jim Beckerleg’s Compensation Compare With Similar Sized Companies?

According to our data, Pro Real Estate Investment Trust has a market capitalization of CA$286m, and paid its CEO total annual compensation worth CA$619k over the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from CA$133m to CA$533m, and the median CEO total compensation was CA$910k.

A first glance this seems like a real positive for shareholders, since Jim Beckerleg is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance. It could be important to check this free visual depiction of what analysts expect for the future.

The graphic below shows how CEO compensation at Pro Real Estate Investment Trust has changed from year to year.

TSX:PRV.UN CEO Compensation, October 10th 2019
TSX:PRV.UN CEO Compensation, October 10th 2019

Is Pro Real Estate Investment Trust Growing?

Pro Real Estate Investment Trust has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is up 47% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.

Has Pro Real Estate Investment Trust Been A Good Investment?

Most shareholders would probably be pleased with Pro Real Estate Investment Trust for providing a total return of 43% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary…

It appears that Pro Real Estate Investment Trust remunerates its CEO below most similar sized companies.

Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Jim Beckerleg deserves a raise! It’s not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Pro Real Estate Investment Trust.

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.