Shareholders May Not Be So Generous With BTB Real Estate Investment Trust's (TSE:BTB.UN) CEO Compensation And Here's Why

Key Insights

• BTB Real Estate Investment Trust's Annual General Meeting to take place on 20th of June
• Salary of CA$643.8k is part of CEO Michel Leonard's total remuneration
• The total compensation is 98% higher than the average for the industry
• BTB Real Estate Investment Trust's FFO grew by 19% per year over the past three years while total shareholder loss over the past three years was 2.9%

As many shareholders of BTB Real Estate Investment Trust (TSE:BTB.UN) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 20th of June could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for BTB Real Estate Investment Trust

Comparing BTB Real Estate Investment Trust's CEO Compensation With The Industry

At the time of writing, our data shows that BTB Real Estate Investment Trust has a market capitalization of CA$282m, and reported total annual CEO compensation of CA$1.6m for the year to December 2023. Notably, that's an increase of 11% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$644k.

In comparison with other companies in the Canadian REITs industry with market capitalizations ranging from CA$137m to CA$549m, the reported median CEO total compensation was CA$807k. This suggests that Michel Leonard is paid more than the median for the industry. What's more, Michel Leonard holds CA$3.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CA$644k	CA$625k	40%
Other	CA$950k	CA$805k	60%
Total Compensation	CA$1.6m	CA$1.4m	100%

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. It's interesting to note that BTB Real Estate Investment Trust allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

BTB Real Estate Investment Trust's Growth

BTB Real Estate Investment Trust has seen its funds from operations (FFO) increase by 19% per year over the past three years. In the last year, its revenue is up 3.4%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has BTB Real Estate Investment Trust Been A Good Investment?

With a three year total loss of 2.9% for the shareholders, BTB Real Estate Investment Trust would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for BTB Real Estate Investment Trust you should be aware of, and 1 of them is a bit concerning.

Switching gears from BTB 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.