Here’s What We Think About CT Real Estate Investment Trust’s (TSE:CRT.UN) CEO Pay

In 2013 Ken Silver was appointed CEO of CT Real Estate Investment Trust (TSE:CRT.UN). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

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How Does Ken Silver’s Compensation Compare With Similar Sized Companies?

Our data indicates that CT Real Estate Investment Trust is worth CA$2.7b, and total annual CEO compensation is CA$1.7m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at CA$600k. We looked at a group of companies with market capitalizations from CA$1.3b to CA$4.3b, and the median CEO compensation was CA$2.8m.

Most shareholders would consider it a positive that Ken Silver takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.

You can see a visual representation of the CEO compensation at CT Real Estate Investment Trust, below.

TSX:CRT.UN CEO Compensation January 22nd 19
TSX:CRT.UN CEO Compensation January 22nd 19

Is CT Real Estate Investment Trust Growing?

On average over the last three years, CT Real Estate Investment Trust has grown earnings per share (EPS) by 2.4% each year (using a line of best fit). It achieved revenue growth of 6.5% over the last year.

I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise.

Has CT Real Estate Investment Trust Been A Good Investment?

CT Real Estate Investment Trust has generated a total shareholder return of 7.1% over three years, so most shareholders wouldn’t be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

CT Real Estate Investment Trust is currently paying its CEO below what is normal for companies of its size.

It’s well worth noting that while Ken Silver is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. So shareholders may not be elated, but they shouldn’t be worried about the CEO compensation, either. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CT Real Estate Investment Trust (free visualization of insider trades).

Important note: CT Real Estate Investment Trust may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.