Yahoo Finance Is UDR, Inc.'s (NYSE:UDR) CEO Pay Fair?
Tom Toomey has been the CEO of UDR, Inc. (NYSE:UDR) since 2001. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for UDR
How Does Tom Toomey's Compensation Compare With Similar Sized Companies?
According to our data, UDR, Inc. has a market capitalization of US$14b, and paid its CEO total annual compensation worth US$6.3m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$800k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Most shareholders would consider it a positive that Tom Toomey takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at UDR has changed over time.
Is UDR, Inc. Growing?
On average over the last three years, UDR, Inc. has shrunk earnings per share by 23% each year (measured with a line of best fit). In the last year, its revenue is up 9.1%.
Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has UDR, Inc. Been A Good Investment?
Most shareholders would probably be pleased with UDR, Inc. for providing a total return of 42% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
UDR, Inc. is currently paying its CEO below what is normal for large companies.
Tom Toomey receives relatively low remuneration compared to most large companies. And while the company isn't growing earnings per share, total returns have been pleasing. We would like to see EPS growth, but in our view it seems the CEO is remunerated reasonably. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling UDR (free visualization of insider trades).
If you want to buy a stock that is better than UDR, this free list of high return, low debt companies is a great place to look.
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.
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