Is Acadia Realty Trust (NYSE:AKR) Excessively Paying Its CEO?

Kenneth Bernstein became the CEO of Acadia Realty Trust (NYSE:AKR) in 2001. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

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Check out our latest analysis for Acadia Realty Trust

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

At the time of writing our data says that Acadia Realty Trust has a market cap of US$2.5b, and is paying total annual CEO compensation of US$5.1m. (This figure is for the year to December 2018). Notably, that’s an increase of 14% over the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$612k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$5.3m.

So Kenneth Bernstein is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Acadia Realty Trust has changed over time.

NYSE:AKR CEO Compensation, May 23rd 2019
NYSE:AKR CEO Compensation, May 23rd 2019

Is Acadia Realty Trust Growing?

Over the last three years Acadia Realty Trust has shrunk its earnings per share by an average of 29% per year (measured with a line of best fit). Its revenue is up 9.3% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

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

The company isn’t growing EPS, and shareholder returns have been disappointing. This doesn’t look great when you consider CEO remuneration is up on last year. Suffice it to say, we don’t think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Acadia Realty Trust.

Important note: Acadia Realty Trust may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.