Stock Analysis

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

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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.

Component20222021Proportion (2022)
Salary US$425k US$410k 17%
Other US$2.0m US$1.3m 83%
Total CompensationUS$2.5m US$1.7m100%

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.

NYSE:UBA CEO Compensation March 16th 2023

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.

Valuation is complex, but we're helping make it simple.

Find out whether Urstadt Biddle Properties is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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