Is Brandywine Realty Trust (NYSE:BDN) Overpaying Its CEO?

Jerry Sweeney has been the CEO of Brandywine Realty Trust (NYSE:BDN) since 1994. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Brandywine Realty Trust

How Does Jerry Sweeney’s Compensation Compare With Similar Sized Companies?

According to our data, Brandywine Realty Trust has a market capitalization of US$2.7b, and pays its CEO total annual compensation worth US$4.6m. (This is based on the year to December 2018). That’s less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$742k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.0m.

That means Jerry Sweeney receives fairly typical remuneration for the CEO of a company that size. 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.

The graphic below shows how CEO compensation at Brandywine Realty Trust has changed from year to year.

NYSE:BDN CEO Compensation, April 25th 2019
NYSE:BDN CEO Compensation, April 25th 2019

Is Brandywine Realty Trust Growing?

Over the last three years Brandywine Realty Trust has grown its earnings per share (EPS) by an average of 101% per year (using a line of best fit). It achieved revenue growth of 3.3% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.

Has Brandywine Realty Trust Been A Good Investment?

Brandywine Realty Trust has served shareholders reasonably well, with a total return of 17% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Jerry Sweeney is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Brandywine Realty Trust insiders are buying or selling shares.

If you want to buy a stock that is better than Brandywine Realty Trust, this free list of high return, low debt companies is a great place to look.

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.