In 2005 Armin Martens was appointed CEO of Artis Real Estate Investment Trust (TSE:AX.UN). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Artis Real Estate Investment Trust
How Does Armin Martens’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Artis Real Estate Investment Trust has a market cap of CA$1.6b, and reported total annual CEO compensation of CA$3.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$800k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from CA$1.3b to CA$4.2b, we found the median CEO total compensation was CA$3.0m.
So Armin Martens receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Artis Real Estate Investment Trust, below.
Is Artis Real Estate Investment Trust Growing?
On average over the last three years, Artis Real Estate Investment Trust has grown earnings per share (EPS) by 10% each year (using a line of best fit). In the last year, its revenue is up 3.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Artis Real Estate Investment Trust Been A Good Investment?
Artis Real Estate Investment Trust has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Remuneration for Armin Martens is close enough to the median pay for a CEO of a similar sized company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Artis Real Estate Investment Trust shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.
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2019-12-21 13:16:07Z
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