This Is Why INDUS Realty Trust, Inc.'s (NASDAQ:INDT) CEO Compensation Looks Appropriate

The performance at INDUS Realty Trust, Inc. (NASDAQ:INDT) has been rather lacklustre of late and shareholders may be wondering what CEO Mike Gamzon is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 16 June 2021. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for INDUS Realty Trust

How Does Total Compensation For Mike Gamzon Compare With Other Companies In The Industry?

At the time of writing, our data shows that INDUS Realty Trust, Inc. has a market capitalization of US$516m, and reported total annual CEO compensation of US$786k for the year to November 2020. Notably, that's an increase of 14% over the year before. We note that the salary portion, which stands at US$545.1k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$1.9m. Accordingly, INDUS Realty Trust pays its CEO under the industry median. What's more, Mike Gamzon holds US$7.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$545k	US$532k	69%
Other	US$241k	US$157k	31%
Total Compensation	US$786k	US$688k	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that INDUS Realty Trust pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at INDUS Realty Trust, Inc.'s Growth Numbers

INDUS Realty Trust, Inc. has reduced its funds from operations (FFO) by 65% over the last one year. Its revenue is up 8.9% over the last year.

Overall this is not a very positive result for shareholders. The fairly low revenue growth fails to impress given that the FFO is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 INDUS Realty Trust, Inc. Been A Good Investment?

Most shareholders would probably be pleased with INDUS Realty Trust, Inc. for providing a total return of 57% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean these strong returns may not continue. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

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 3 warning signs for INDUS Realty Trust that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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