Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2016 Conor Flynn was appointed CEO of Kimco Realty Corporation (NYSE:KIM). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business 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?
At the time of writing our data says that Kimco Realty Corporation has a market cap of US$7.4b, and is paying total annual CEO compensation of US$5.7m. (This number is for the twelve months until December 2018). That’s a modest increase of 3.2% on the prior year year. 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 total compensation was US$7.0m.
That means Conor Flynn 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.
You can see, below, how CEO compensation at Kimco Realty has changed over time.
Is Kimco Realty Corporation Growing?
On average over the last three years, Kimco Realty Corporation has shrunk earnings per share by 16% each year (measured with a line of best fit). It saw its revenue drop -4.6% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Kimco Realty Corporation Been A Good Investment?
Since shareholders would have lost about 28% over three years, some Kimco Realty Corporation shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Conor Flynn is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it’s certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don’t think the CEO is underpaid! Shareholders may want to check for free if Kimco Realty insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.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.