Key Insights
The decent performance at Morguard Real Estate Investment Trust (TSE:MRT.UN) recently will please most shareholders as they go into the AGM coming up on 8th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. Here is our take on why we think CEO compensation is fair and may even warrant a raise.
View our latest analysis for Morguard Real Estate Investment Trust
How Does Total Compensation For Kuldip Sahi Compare With Other Companies In The Industry?
According to our data, Morguard Real Estate Investment Trust has a market capitalization of CA$341m, and paid its CEO total annual compensation worth CA$100k over the year to December 2023. This was the same amount the CEO received in the prior year. Notably, the salary of CA$100k is the entirety of the CEO compensation.
In comparison with other companies in the Canadian REITs industry with market capitalizations ranging from CA$138m to CA$550m, the reported median CEO total compensation was CA$809k. That is to say, Kuldip Sahi is paid under the industry median. What’s more, Kuldip Sahi holds CA$6.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
|
Component |
2023 |
2022 |
Proportion (2023) |
|
Salary |
CA$100k |
CA$100k |
100% |
|
Other |
– |
– |
– |
|
Total Compensation |
CA$100k |
CA$100k |
100% |
On an industry level, around 58% of total compensation represents salary and 42% is other remuneration. Speaking on a company level, Morguard Real Estate Investment Trust prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Morguard Real Estate Investment Trust’s Growth Numbers
Morguard Real Estate Investment Trust has seen its earnings per share (EPS) increase by 35% a year over the past three years. It achieved revenue growth of 4.9% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Morguard Real Estate Investment Trust Been A Good Investment?
With a total shareholder return of 10% over three years, Morguard Real Estate Investment Trust shareholders would, in general, 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…
Morguard Real Estate Investment Trust pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company’s overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Morguard Real Estate Investment Trust you should be aware of, and 1 of them is concerning.
Important note: Morguard Real Estate Investment Trust is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.