In 2015 Milton Lamb was appointed CEO of Automotive Properties Real Estate Investment Trust (TSE:APR.UN). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Milton Lamb’s Compensation Compare With Similar Sized Companies?
Our data indicates that Automotive Properties Real Estate Investment Trust is worth CA$339m, and total annual CEO compensation is CA$765k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$380k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$134m to CA$535m. The median total CEO compensation was CA$824k.
So Milton Lamb receives a similar amount to the median CEO pay, amongst the companies we looked at. 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 Automotive Properties Real Estate Investment Trust has changed over time.
Is Automotive Properties Real Estate Investment Trust Growing?
On average over the last three years, Automotive Properties Real Estate Investment Trust has shrunk earnings per share by 7.3% each year (measured with a line of best fit). It achieved revenue growth of 13% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Automotive Properties Real Estate Investment Trust Been A Good Investment?
Most shareholders would probably be pleased with Automotive Properties Real Estate Investment Trust for providing a total return of 49% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Milton Lamb is paid around the same as most CEOs of similar size companies.
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we think most shareholders wouldn’t be too worried about CEO compensation, which is close to the median for similar sized companies. So you may want to check if insiders are buying Automotive Properties Real Estate Investment Trust shares with their own money (free access).
If you want to buy a stock that is better than Automotive Properties Real Estate Investment Trust, this free list of high return, low debt companies is a great place to look.
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 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.