Yahoo Finance Our Take On Kite Realty Group Trust's (NYSE:KRG) CEO Salary
John Kite has been the CEO of Kite Realty Group Trust (NYSE:KRG) since 2004. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.
See our latest analysis for Kite Realty Group Trust
How Does John Kite's Compensation Compare With Similar Sized Companies?
Our data indicates that Kite Realty Group Trust is worth US$1.5b, and total annual CEO compensation was reported as US$3.7m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$775k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$4.1m.
That means John Kite receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Kite Realty Group Trust, below.
Is Kite Realty Group Trust Growing?
Kite Realty Group Trust has reduced its earnings per share by an average of 99% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 6.3% 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has Kite Realty Group Trust Been A Good Investment?
With a three year total loss of 13%, Kite Realty Group Trust would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for John Kite is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. Shareholders may want to check for free if Kite Realty Group Trust insiders are buying or selling shares.
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.
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 editorial-team@simplywallst.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.
