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Does BTB Real Estate Investment Trust's (TSE:BTB.UN) CEO Salary Reflect Performance?

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Michel Léonard has been the CEO of BTB Real Estate Investment Trust (TSE:BTB.UN) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.

See our latest analysis for BTB Real Estate Investment Trust

How Does Michel Léonard's Compensation Compare With Similar Sized Companies?

According to our data, BTB Real Estate Investment Trust has a market capitalization of CA$287m, and pays its CEO total annual compensation worth CA$1.1m. (This is based on the year to December 2018). Notably, that's an increase of 12% over the year before. While we always look at total compensation first, we note that the salary component is less, at CA$555k. We examined companies with market caps from CA$134m to CA$535m, and discovered that the median CEO total compensation of that group was CA$902k.

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So Michel Léonard receives a similar amount to the median CEO pay, amongst 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 BTB Real Estate Investment Trust has changed from year to year.

TSX:BTB.UN CEO Compensation, June 17th 2019
TSX:BTB.UN CEO Compensation, June 17th 2019

Is BTB Real Estate Investment Trust Growing?

Over the last three years BTB Real Estate Investment Trust has grown its earnings per share (EPS) by an average of 29% per year (using a line of best fit). It achieved revenue growth of 12% over the last year.

This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.

Has BTB Real Estate Investment Trust Been A Good Investment?

Most shareholders would probably be pleased with BTB Real Estate Investment Trust for providing a total return of 35% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Michel Léonard is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if BTB Real Estate Investment Trust insiders are buying or selling shares.

Important note: BTB Real Estate Investment 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.