Should You Worry About First Capital Realty Inc.’s (TSE:FCR) CEO Pay Cheque?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Adam Paul became the CEO of First Capital Realty Inc. (TSE:FCR) in 2015. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for First Capital Realty

How Does Adam Paul’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that First Capital Realty Inc. has a market cap of CA$5.4b, and is paying total annual CEO compensation of CA$3.4m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$2.7b to CA$8.6b. The median total CEO compensation was CA$4.1m.

That means Adam Paul receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at First Capital Realty, below.

TSX:FCR CEO Compensation, April 30th 2019
TSX:FCR CEO Compensation, April 30th 2019

Is First Capital Realty Inc. Growing?

First Capital Realty Inc. has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.6%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.

Has First Capital Realty Inc. Been A Good Investment?

With a total shareholder return of 18% over three years, First Capital Realty Inc. shareholders would, in general, 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 Adam Paul is close enough to the median pay for a CEO of a similar sized company .

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying First Capital Realty shares with their own money (free access).

Important note: First Capital Realty 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.

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 editorial-team@simplywallst.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.