Increases to Automotive Properties Real Estate Investment Trust's (TSE:APR.UN) CEO Compensation Might Cool off for now

Performance at Automotive Properties Real Estate Investment Trust (TSE:APR.UN) has been reasonably good and CEO Milton Lamb has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 09 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Automotive Properties Real Estate Investment Trust

Comparing Automotive Properties Real Estate Investment Trust's CEO Compensation With the industry

According to our data, Automotive Properties Real Estate Investment Trust has a market capitalization of CA$611m, and paid its CEO total annual compensation worth CA$1.1m over the year to December 2020. We note that's a decrease of 50% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$475k.

In comparison with other companies in the industry with market capitalizations ranging from CA$241m to CA$964m, the reported median CEO total compensation was CA$501k. Accordingly, our analysis reveals that Automotive Properties Real Estate Investment Trust pays Milton Lamb north of the industry median. Furthermore, Milton Lamb directly owns CA$1.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	CA$475k	CA$419k	42%
Other	CA$665k	CA$1.9m	58%
Total Compensation	CA$1.1m	CA$2.3m	100%

Speaking on an industry level, nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. According to our research, Automotive Properties Real Estate Investment 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 Automotive Properties Real Estate Investment Trust's Growth Numbers

Automotive Properties Real Estate Investment Trust has seen its funds from operations (FFO) increase by 20% per year over the past three years. In the last year, its revenue is up 7.7%.

Overall this is a positive result for shareholders, showing that the company has improved in recent 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 Automotive Properties Real Estate Investment Trust Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Automotive Properties Real Estate Investment Trust has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Automotive Properties Real Estate Investment Trust (2 are significant!) that you should be aware of before investing here.

Switching gears from Automotive Properties Real Estate Investment Trust, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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