Conor Flynn has been the CEO of Kimco Realty Corporation (NYSE:KIM) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. 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 Conor Flynn’s Compensation Compare With Similar Sized Companies?
According to our data, Kimco Realty Corporation has a market capitalization of US$7.4b, and pays its CEO total annual compensation worth US$5.6m. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. We looked at a group of companies with market capitalizations from US$4.0b to US$12b, and the median CEO compensation was US$6.2m.
So Conor Flynn receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at Kimco Realty has changed from year to year.
Is Kimco Realty Corporation Growing?
On average over the last three years, Kimco Realty Corporation has shrunk earnings per share by 25% each year (measured with a line of best fit). Its revenue is down -3.0% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kimco Realty Corporation Been A Good Investment?
Since shareholders would have lost about 25% over three years, some Kimco Realty Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Conor Flynn is close enough to the median pay for a CEO of a similar sized company .
The company isn’t growing EPS, and shareholder returns have been disappointing. Few would argue that it’s wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kimco Realty.
Important note: Kimco Realty 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.
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