Does Crombie Real Estate Investment Trust’s (TSE:CRR.UN) CEO Pay Reflect Performance?

Don Clow became the CEO of Crombie Real Estate Investment Trust (TSE:CRR.UN) in 2009. 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 Crombie Real Estate Investment Trust

Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.

How Does Don Clow’s Compensation Compare With Similar Sized Companies?

Our data indicates that Crombie Real Estate Investment Trust is worth CA$2.0b, and total annual CEO compensation is CA$2.2m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$630k. We looked at a group of companies with market capitalizations from CA$1.3b to CA$4.2b, and the median CEO compensation was CA$2.8m.

That means Don Clow receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

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

TSX:CRR.UN CEO Compensation January 20th 19
TSX:CRR.UN CEO Compensation January 20th 19

Is Crombie Real Estate Investment Trust Growing?

Crombie Real Estate Investment Trust has increased its earnings per share (EPS) by an average of 16% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.1% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Crombie Real Estate Investment Trust Been A Good Investment?

Crombie Real Estate Investment Trust has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Remuneration for Don Clow is close enough to the median pay for a CEO of a similar sized company .

The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Crombie Real Estate Investment Trust insiders are buying or selling shares.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.