Here's Why Urstadt Biddle Properties Inc.'s (NYSE:UBA) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• Urstadt Biddle Properties to hold its Annual General Meeting on 22nd of March
• Total pay for CEO Wing Biddle includes US$425.3k salary
• The total compensation is similar to the average for the industry
• Urstadt Biddle Properties' total shareholder return over the past three years was 88% while its FFO grew by 4.9% per year over the past three years

Performance at Urstadt Biddle Properties Inc. (NYSE:UBA) has been reasonably good and CEO Wing Biddle has done a decent job of steering the company in the right direction. 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 22nd of March. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Urstadt Biddle Properties

Comparing Urstadt Biddle Properties Inc.'s CEO Compensation With The Industry

Our data indicates that Urstadt Biddle Properties Inc. has a market capitalization of US$648m, and total annual CEO compensation was reported as US$2.5m for the year to October 2022. We note that's an increase of 42% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$425k.

In comparison with other companies in the American REITs industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$3.5m. From this we gather that Wing Biddle is paid around the median for CEOs in the industry. Furthermore, Wing Biddle directly owns US$26m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	US$425k	US$410k	17%
Other	US$2.0m	US$1.3m	83%
Total Compensation	US$2.5m	US$1.7m	100%

On an industry level, around 13% of total compensation represents salary and 87% is other remuneration. According to our research, Urstadt Biddle Properties has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Urstadt Biddle Properties Inc.'s Growth

Over the past three years, Urstadt Biddle Properties Inc. has seen its funds from operations (FFO) grow by 4.9% per year. It achieved revenue growth of 5.3% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in FFO is good. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Urstadt Biddle Properties Inc. Been A Good Investment?

Boasting a total shareholder return of 88% over three years, Urstadt Biddle Properties Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Urstadt Biddle Properties that investors should think about before committing capital to this stock.

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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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.