We Think Some Shareholders May Hesitate To Increase CTO Realty Growth, Inc.'s (NYSE:CTO) CEO Compensation

Key Insights

• CTO Realty Growth's Annual General Meeting to take place on 20th of June
• Salary of US$640.7k is part of CEO John Albright's total remuneration
• Total compensation is 108% above industry average
• CTO Realty Growth's FFO grew by 7.0% per year over the past three years while total shareholder return over the past three years was 22%

CEO John Albright has done a decent job of delivering relatively good performance at CTO Realty Growth, Inc. (NYSE:CTO) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 20th of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for CTO Realty Growth

Comparing CTO Realty Growth, Inc.'s CEO Compensation With The Industry

Our data indicates that CTO Realty Growth, Inc. has a market capitalization of US$400m, and total annual CEO compensation was reported as US$2.6m for the year to December 2023. That's a notable increase of 8.2% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$641k.

On examining similar-sized companies in the American REITs industry with market capitalizations between US$200m and US$800m, we discovered that the median CEO total compensation of that group was US$1.3m. This suggests that John Albright is paid more than the median for the industry. What's more, John Albright holds US$10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$641k	US$593k	24%
Other	US$2.0m	US$1.8m	76%
Total Compensation	US$2.6m	US$2.4m	100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. Although there is a difference in how total compensation is set, CTO Realty Growth more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at CTO Realty Growth, Inc.'s Growth Numbers

CTO Realty Growth, Inc. has seen its funds from operations (FFO) increase by 7.0% per year over the past three years. Its revenue is up 25% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest FFO growth, we get a good impression of the company. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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 CTO Realty Growth, Inc. Been A Good Investment?

With a total shareholder return of 22% over three years, CTO Realty Growth, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for CTO Realty Growth you should be aware of, and 2 of them make us uncomfortable.

Switching gears from CTO Realty Growth, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com