Conor Flynn became the CEO of Kimco Realty Corporation (NYSE:KIM) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does Conor Flynn’s Compensation Compare With Similar Sized Companies?
Our data indicates that Kimco Realty Corporation is worth US$8.2b, and total annual CEO compensation was reported as US$5.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.5m.
So Conor Flynn is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Kimco Realty has changed over time.
Is Kimco Realty Corporation Growing?
Kimco Realty Corporation has reduced its earnings per share by an average of 2.4% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 4.1% over the last year.
The lack of earnings per share growth in the last three years is unimpressive. 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Kimco Realty Corporation Been A Good Investment?
With a three year total loss of 7.7%, Kimco Realty Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Conor Flynn is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. So you may want to check if insiders are buying Kimco Realty shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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