Yahoo Finance Should You Worry About Inovalis Real Estate Investment Trust's (TSE:INO.UN) CEO Pay?
In 2013 David Giraud was appointed CEO of Inovalis Real Estate Investment Trust (TSE:INO.UN). 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Inovalis Real Estate Investment Trust
How Does David Giraud's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Inovalis Real Estate Investment Trust has a market cap of CA$249m, and is paying total annual CEO compensation of CA$200k. (This figure is for the year to December 2017). Notably, the salary of CA$200k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$134m to CA$534m. The median total CEO compensation was CA$813k.
A first glance this seems like a real positive for shareholders, since David Giraud is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Inovalis Real Estate Investment Trust, below.
Is Inovalis Real Estate Investment Trust Growing?
Over the last three years Inovalis Real Estate Investment Trust has shrunk its earnings per share by an average of 35% per year (measured with a line of best fit). Its revenue is up 11% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Inovalis Real Estate Investment Trust Been A Good Investment?
Most shareholders would probably be pleased with Inovalis Real Estate Investment Trust for providing a total return of 34% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
It appears that Inovalis Real Estate Investment Trust remunerates its CEO below most similar sized companies.
David Giraud is paid less than CEOs of similar size companies. While the company isn't growing on our analysis, shareholder returns have been good in recent years. Although we could see higher EPS growth, we'd argue the remuneration is not an issue, based on these observations. Whatever your view on compensation, you might want to check if insiders are buying or selling Inovalis Real Estate Investment Trust shares (free trial).
If you want to buy a stock that is better than Inovalis Real Estate Investment Trust, this free list of high return, low debt companies is a great place to look.
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.
