Tom Toomey has been the CEO of UDR Inc (NYSE:UDR) since 2001. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Tom Toomey’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that UDR Inc has a market cap of US$11.8b, and is paying total annual CEO compensation of US$8m. We note that’s an increase of 31% above last year. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.
So Tom Toomey is paid around the average of 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.
You can see a visual representation of the CEO compensation at UDR, below.
Is UDR Inc Growing?
On average over the last three years, UDR Inc has shrunk earnings per share by 16% each year. It achieved revenue growth of 5.7% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
Has UDR Inc Been A Good Investment?
UDR Inc has served shareholders reasonably well, with a total return of 31% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Tom Toomey is paid around the same as most CEOs of large companies.
We feel that earnings per share have been a bit disappointing, but and we don’t think the total returns are amazing. We doubt shareholders are particularly happy to see that the CEO compensation increased on last year. We do not think the CEO pay is a problem, but it’s probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. CEO pay isn’t the only data point that can tell us about management of a company. So it makes sense to check how long the Board of Directors has been in place.
If you would prefer check out another company — one with potentially superior financials — then do not miss 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.