Yahoo Finance A Quick Analysis On Cominar Real Estate Investment Trust's (TSE:CUF.UN) CEO Compensation
This article will reflect on the compensation paid to Sylvain Cossette who has served as CEO of Cominar Real Estate Investment Trust (TSE:CUF.UN) since 2018. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the funds from operations and shareholder returns of the company.
View our latest analysis for Cominar Real Estate Investment Trust
How Does Total Compensation For Sylvain Cossette Compare With Other Companies In The Industry?
Our data indicates that Cominar Real Estate Investment Trust has a market capitalization of CA$1.4b, and total annual CEO compensation was reported as CA$2.7m for the year to December 2019. Notably, that's an increase of 12% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$725k.
On comparing similar companies from the same industry with market caps ranging from CA$531m to CA$2.1b, we found that the median CEO total compensation was CA$1.6m. Hence, we can conclude that Sylvain Cossette is remunerated higher than the industry median. Moreover, Sylvain Cossette also holds CA$333k worth of Cominar Real Estate Investment Trust stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$725k | CA$725k | 27% |
Other | CA$2.0m | CA$1.7m | 73% |
Total Compensation | CA$2.7m | CA$2.4m | 100% |
Talking in terms of the industry, salary represented approximately 33% of total compensation out of all the companies we analyzed, while other remuneration made up 67% of the pie. Cominar Real Estate Investment Trust pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Cominar Real Estate Investment Trust's Growth
Over the last three years, Cominar Real Estate Investment Trust has shrunk its funds from operations (FFO) by 13% per year. In the last year, its revenue is down 3.8%.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Cominar Real Estate Investment Trust Been A Good Investment?
Since shareholders would have lost about 33% over three years, some Cominar Real Estate Investment Trust investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As we noted earlier, Cominar Real Estate Investment Trust pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. To make matters worse, FFO growth has also been negative during this period. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Cominar Real Estate Investment Trust (2 can't be ignored!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. 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.
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