Should You Be Pleased About The CEO Pay At BTB Real Estate Investment Trust’s (TSE:BTB.UN)

Michel Léonard became the CEO of BTB Real Estate Investment Trust (TSE:BTB.UN) in 2006. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for BTB Real Estate Investment Trust

How Does Michel Léonard’s Compensation Compare With Similar Sized Companies?

According to our data, BTB Real Estate Investment Trust has a market capitalization of CA$208m, and paid its CEO total annual compensation worth CA$870k over the year to December 2019. That’s actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at CA$564k. We looked at a group of companies with market capitalizations under CA$281m, and the median CEO total compensation was CA$219k.

Pay mix tells us a lot about how a company functions versus the wider industry, and it’s no different in the case of BTB Real Estate Investment Trust. Speaking on an industry level, we can see that nearly 33% of total compensation represents salary, while the remainder of 67% is other remuneration. BTB Real Estate Investment Trust pays out 65% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.

It would therefore appear that BTB Real Estate Investment Trust pays Michel Léonard more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see a visual representation of the CEO compensation at BTB Real Estate Investment Trust, below.

TSX:BTB.UN CEO Compensation May 26th 2020
TSX:BTB.UN CEO Compensation May 26th 2020

Is BTB Real Estate Investment Trust Growing?

On average over the last three years, BTB Real Estate Investment Trust has seen earnings per share (EPS) move in a favourable direction by 11% each year (using a line of best fit). It achieved revenue growth of 9.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has BTB Real Estate Investment Trust Been A Good Investment?

Given the total loss of 6.2% over three years, many shareholders in BTB Real Estate Investment Trust are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

We examined the amount BTB Real Estate Investment Trust pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. Considering positive per-share earnings movement, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. On another note, BTB Real Estate Investment Trust has 5 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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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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. Thank you for reading.