Yahoo Finance Does Saul Centers, Inc.'s (NYSE:BFS) CEO Pay Reflect Performance?
Bernard Saul became the CEO of Saul Centers, Inc. (NYSE:BFS) in 1993. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Saul Centers
How Does Bernard Saul's Compensation Compare With Similar Sized Companies?
Our data indicates that Saul Centers, Inc. is worth US$1.6b, and total annual CEO compensation was reported as US$260k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$125k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$3.9m.
Most shareholders would consider it a positive that Bernard Saul takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Saul Centers has changed from year to year.
Is Saul Centers, Inc. Growing?
On average over the last three years, Saul Centers, Inc. has grown earnings per share (EPS) by 4.0% each year (using a line of best fit). It achieved revenue growth of 3.6% over the last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has Saul Centers, Inc. Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Saul Centers, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Saul Centers, Inc. is currently paying its CEO below what is normal for companies of its size.
Bernard Saul receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Saul Centers shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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