How Should Investors Feel About Blackstone Mortgage Trust Inc’s (NYSE:BXMT) CEO Pay?

Steve Plavin has been the CEO of Blackstone Mortgage Trust Inc (NYSE:BXMT) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

See our latest analysis for Blackstone Mortgage Trust

How Does Steve Plavin’s Compensation Compare With Similar Sized Companies?

According to our data, Blackstone Mortgage Trust Inc has a market capitalization of US$3.9b, and pays its CEO total annual compensation worth US$1m. That’s less than last year. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Blackstone Mortgage Trust, below.

NYSE:BXMT CEO Compensation October 23rd 18
NYSE:BXMT CEO Compensation October 23rd 18

Is Blackstone Mortgage Trust Inc Growing?

On average over the last three years, Blackstone Mortgage Trust Inc has grown earnings per share (EPS) by 2.8% each year. It achieved revenue growth of 16% over the last year.

I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Blackstone Mortgage Trust Inc Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Blackstone Mortgage Trust Inc has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

It appears that Blackstone Mortgage Trust Inc remunerates its CEO below most similar sized companies.

It’s well worth noting that while Steve Plavin is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. Although we could see higher growth, we’d argue the remuneration is modest, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Blackstone Mortgage Trust Inc shares (free trial).

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.