It's Unlikely That BrightSpire Capital, Inc.'s (NYSE:BRSP) CEO Will See A Huge Pay Rise This Year

Key Insights

• BrightSpire Capital's Annual General Meeting to take place on 16th of May
• Total pay for CEO Mike Mazzei includes US$800.0k salary
• Total compensation is 74% above industry average
• BrightSpire Capital's three-year loss to shareholders was 8.4% while its EPS grew by 83% over the past three years

In the past three years, shareholders of BrightSpire Capital, Inc. (NYSE:BRSP) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 16th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for BrightSpire Capital

Comparing BrightSpire Capital, Inc.'s CEO Compensation With The Industry

According to our data, BrightSpire Capital, Inc. has a market capitalization of US$788m, and paid its CEO total annual compensation worth US$5.8m over the year to December 2023. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$800k.

In comparison with other companies in the American Mortgage REITs industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$3.4m. Hence, we can conclude that Mike Mazzei is remunerated higher than the industry median. Furthermore, Mike Mazzei directly owns US$7.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$800k	US$800k	14%
Other	US$5.0m	US$5.1m	86%
Total Compensation	US$5.8m	US$5.9m	100%

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. There isn't a significant difference between BrightSpire Capital and the broader market, in terms of salary allocation in the overall compensation package. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at BrightSpire Capital, Inc.'s Growth Numbers

BrightSpire Capital, Inc.'s earnings per share (EPS) grew 83% per year over the last three years. Its revenue is up 1.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has BrightSpire Capital, Inc. Been A Good Investment?

Given the total shareholder loss of 8.4% over three years, many shareholders in BrightSpire Capital, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for BrightSpire Capital that you should be aware of before investing.

Switching gears from BrightSpire Capital, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.