How Should Investors React To Acadia Realty Trust’s (NYSE:AKR) CEO Pay?

Kenneth Bernstein became the CEO of Acadia Realty Trust (NYSE:AKR) in 2001. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Acadia Realty Trust

How Does Kenneth Bernstein’s Compensation Compare With Similar Sized Companies?

According to our data, Acadia Realty Trust has a market capitalization of US$2.4b, and pays its CEO total annual compensation worth US$5m. That’s less than last year. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$4m.

That means Kenneth Bernstein 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 Acadia Realty Trust, below.

NYSE:AKR CEO Compensation October 24th 18
NYSE:AKR CEO Compensation October 24th 18

Is Acadia Realty Trust Growing?

Acadia Realty Trust has reduced its earnings per share by an average of 22% a year, over the last three years. It achieved revenue growth of 21% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

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

Has Acadia Realty Trust Been A Good Investment?

Given the total loss of 5.4% over three years, many shareholders in Acadia Realty Trust are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

Kenneth Bernstein is paid around the same as most CEOs of similar size companies.

After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don’t think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Acadia Realty Trust (free visualization of insider trades).

Or you might prefer examine intently this intuitive graph showing past 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.