Yahoo Finance How Much Did Columbia Property Trust, Inc.'s (NYSE:CXP) CEO Pocket Last Year?
In 2013, E. Mills was appointed CEO of Columbia Property Trust, Inc. (NYSE:CXP). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Columbia Property Trust
How Does E. Mills's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Columbia Property Trust, Inc. has a market cap of US$1.5b, and reported total annual CEO compensation of US$5.0m for the year to December 2019. That's a fairly small increase of 3.0% on year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$824k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. 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$4.9m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Columbia Property Trust. On a sector level, around 15% of total compensation represents salary and 85% is other remuneration. Our data reveals that Columbia Property Trust allocates salary in line with the wider market.
So E. Mills is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at Columbia Property Trust has changed from year to year.
Is Columbia Property Trust, Inc. Growing?
Columbia Property Trust, Inc. has reduced its earnings per share by an average of 77% a year, over the last three years (measured with a line of best fit). Its revenue is down 3.3% over last year.
Unfortunately, earnings per share have trended lower over the last three years. 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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Columbia Property Trust, Inc. Been A Good Investment?
Given the total loss of 36% over three years, many shareholders in Columbia Property Trust, Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for E. Mills is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! Taking a breather from CEO compensation, we've spotted 4 warning signs for Columbia Property Trust (of which 1 is a bit unpleasant!) you should know about in order to have a holistic understanding of the stock.
If you want to buy a stock that is better than Columbia Property Trust, 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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