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In 2013 Willing Biddle was appointed CEO of Urstadt Biddle Properties Inc. (NYSE:UBA). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Willing Biddle’s Compensation Compare With Similar Sized Companies?
Our data indicates that Urstadt Biddle Properties Inc. is worth US$788m, and total annual CEO compensation is US$2.4m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$364k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.2m.
So Willing Biddle 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 Urstadt Biddle Properties has changed from year to year.
Is Urstadt Biddle Properties Inc. Growing?
Urstadt Biddle Properties Inc. has reduced its earnings per share by an average of 15% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 8.5% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Urstadt Biddle Properties Inc. Been A Good Investment?
With a total shareholder return of 28% over three years, Urstadt Biddle Properties Inc. shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Willing Biddle is paid around the same as most CEOs of similar size companies.
We feel that earnings per share have been a bit disappointing, but and we don’t think the total returns are amazing. We do not think the CEO pay is a problem, but we’d venture the company should look to improve its business metrics (and share price) before paying any more. Whatever your view on compensation, you might want to check if insiders are buying or selling Urstadt Biddle Properties shares (free trial).
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.