Ivan Kaufman has been the CEO of Arbor Realty Trust Inc (NYSE:ABR) since 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ivan Kaufman’s Compensation Compare With Similar Sized Companies?
According to our data, Arbor Realty Trust Inc has a market capitalization of US$1.2b, and pays its CEO total annual compensation worth US$9m. That’s a notable increase of 61% on last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2m.
Thus we can conclude that Ivan Kaufman receives more in total compensation than the median of a group of companies in the same market, and of similar size to Arbor Realty Trust Inc. However, this doesn’t necessarily mean the pay 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 Arbor Realty Trust, below.
Is Arbor Realty Trust Inc Growing?
On average over the last three years, Arbor Realty Trust Inc has grown earnings per share (EPS) by 5.5% each year. Its revenue is up 16% over last year.
I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. So while performance isn’t amazing, we think it really does seem quite respectable. So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.
Has Arbor Realty Trust Inc Been A Good Investment?
Most shareholders would probably be pleased with Arbor Realty Trust Inc for providing a total return of 150% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Arbor Realty Trust Inc, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. High CEO remuneration is not great, but it certainly doesn’t mean a stock will perform poorly. Nonetheless, it could be useful to double-check if insiders have sold shares recently.
Of course Arbor Realty Trust may not be the best stock to buy. So you may wish to see this free collection of other companies that have 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 firstname.lastname@example.org.