Yahoo Finance Increases to BTB Real Estate Investment Trust's (TSE:BTB.UN) CEO Compensation Might Cool off for now
Key Insights
BTB Real Estate Investment Trust to hold its Annual General Meeting on 20th of June
Total pay for CEO Michel Leonard includes CA$643.8k salary
The total compensation is 33% higher than the average for the industry
BTB Real Estate Investment Trust's FFO grew by 19% per year over the past three years while total shareholder loss over the past three years was 3.4%
In the past three years, shareholders of BTB Real Estate Investment Trust (TSE:BTB.UN) have seen a loss on their investment. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 20th of June could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for BTB Real Estate Investment Trust
How Does Total Compensation For Michel Leonard Compare With Other Companies In The Industry?
According to our data, BTB Real Estate Investment Trust has a market capitalization of CA$279m, and paid its CEO total annual compensation worth CA$1.6m over the year to December 2023. Notably, that's an increase of 11% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$644k.
On comparing similar companies from the Canadian REITs industry with market caps ranging from CA$137m to CA$549m, we found that the median CEO total compensation was CA$1.2m. This suggests that Michel Leonard is paid more than the median for the industry. Furthermore, Michel Leonard directly owns CA$3.9m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$644k | CA$625k | 40% |
Other | CA$950k | CA$805k | 60% |
Total Compensation | CA$1.6m | CA$1.4m | 100% |
Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. BTB Real Estate Investment Trust pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at BTB Real Estate Investment Trust's Growth Numbers
Over the past three years, BTB Real Estate Investment Trust has seen its funds from operations (FFO) grow by 19% per year. It achieved revenue growth of 3.4% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has BTB Real Estate Investment Trust Been A Good Investment?
Since shareholders would have lost about 3.4% over three years, some BTB Real Estate Investment Trust investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for BTB Real Estate Investment Trust (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from BTB Real Estate Investment Trust, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
