Yahoo Finance Should You Worry About Kite Realty Group Trust's (NYSE:KRG) CEO Pay Cheque?
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John Kite became the CEO of Kite Realty Group Trust (NYSE:KRG) in 2004. First, this article will compare CEO compensation with compensation at similar sized 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Kite Realty Group Trust
How Does John Kite's Compensation Compare With Similar Sized Companies?
According to our data, Kite Realty Group Trust has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$3.7m. (This is based on the year to December 2018). We note that's an increase of 8.7% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$775k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$3.7m.
So John Kite is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Kite Realty Group Trust has changed from year to year.
Is Kite Realty Group Trust Growing?
Over the last three years Kite Realty Group Trust has shrunk its earnings per share by an average of 106% per year (measured with a line of best fit). It saw its revenue drop -2.1% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. 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 Kite Realty Group Trust Been A Good Investment?
Given the total loss of 30% over three years, many shareholders in Kite Realty Group Trust are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
John Kite is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. So shareholders might not feel great about the fact that CEO pay increased on last year. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kite Realty Group Trust (free visualization of insider trades).
Important note: Kite Realty Group Trust may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.
