How Does Easterly Government Properties' (NYSE:DEA) CEO Salary Compare to Peers?

By
Simply Wall St
Published
December 26, 2020
NYSE:DEA

This article will reflect on the compensation paid to William Trimble who has served as CEO of Easterly Government Properties, Inc. (NYSE:DEA) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent funds from operations growth and investor returns for Easterly Government Properties.

View our latest analysis for Easterly Government Properties

Comparing Easterly Government Properties, Inc.'s CEO Compensation With the industry

According to our data, Easterly Government Properties, Inc. has a market capitalization of US$2.0b, and paid its CEO total annual compensation worth US$3.8m over the year to December 2019. That's a notable increase of 54% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$725k.

On examining similar-sized companies in the industry with market capitalizations between US$1.0b and US$3.2b, we discovered that the median CEO total compensation of that group was US$4.4m. So it looks like Easterly Government Properties compensates William Trimble in line with the median for the industry. What's more, William Trimble holds US$2.1m worth of shares in the company in their own name.

Component20192018Proportion (2019)
Salary US$725k US$525k 19%
Other US$3.1m US$2.0m 81%
Total CompensationUS$3.8m US$2.5m100%

On an industry level, around 15% of total compensation represents salary and 85% is other remuneration. According to our research, Easterly Government Properties has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
NYSE:DEA CEO Compensation December 26th 2020

A Look at Easterly Government Properties, Inc.'s Growth Numbers

Easterly Government Properties, Inc. has seen its funds from operations (FFO) increase by 23% per year over the past three years. It achieved revenue growth of 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Easterly Government Properties, Inc. Been A Good Investment?

With a total shareholder return of 21% over three years, Easterly Government Properties, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As we noted earlier, Easterly Government Properties pays its CEO in line with similar-sized companies belonging to the same industry. But FFO growth over the last three years has been impressive, although the same cannot be said for shareholder returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which shouldn't be ignored) in Easterly Government Properties we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. 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.
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