In 2001 Kenneth Bernstein was appointed CEO of Acadia Realty Trust (NYSE:AKR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Kenneth Bernstein’s Compensation Compare With Similar Sized Companies?
Our data indicates that Acadia Realty Trust is worth US$2.3b, and total annual CEO compensation is US$4.5m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$612k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$3.5m.
So Kenneth Bernstein is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. So this free visualization of the analyst consensus on future earnings could help you make the right decision about whether to buy, sell, or hold.
You can see, below, how CEO compensation at Acadia Realty Trust has changed over time.
Is Acadia Realty Trust Growing?
Over the last three years Acadia Realty Trust has shrunk its earnings per share by an average of 21% per year. It achieved revenue growth of 9.9% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Has Acadia Realty Trust Been A Good Investment?
Given the total loss of 8.5% 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.
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. Suffice it to say, we don’t think the CEO is underpaid! So you may want to check if insiders are buying Acadia Realty Trust shares with their own money (free access).
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.
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 firstname.lastname@example.org.