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Is Automotive Properties Real Estate Investment Trust (TSE:APR.UN) Excessively Paying Its CEO?

In 2015 Milton Lamb was appointed CEO of Automotive Properties Real Estate Investment Trust (TSE:APR.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.

Check out our latest analysis for Automotive Properties Real Estate Investment Trust

How Does Milton Lamb's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Automotive Properties Real Estate Investment Trust has a market cap of CA$610m, and reported total annual CEO compensation of CA$902k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$399k. When we examined a selection of companies with market caps ranging from CA$264m to CA$1.1b, we found the median CEO total compensation was CA$1.3m.

That means Milton Lamb receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Automotive Properties Real Estate Investment Trust, below.

TSX:APR.UN CEO Compensation, February 22nd 2020
TSX:APR.UN CEO Compensation, February 22nd 2020

Is Automotive Properties Real Estate Investment Trust Growing?

Earnings per share at Automotive Properties Real Estate Investment Trust are much the same as they were three years ago, albeit with a positive trend. In the last year, its revenue is up 39%.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Shareholders might be interested in this free visualization of analyst forecasts.

Has Automotive Properties Real Estate Investment Trust Been A Good Investment?

I think that the total shareholder return of 48%, over three years, would leave most Automotive Properties Real Estate Investment Trust shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Milton Lamb is paid around the same as most CEOs of similar size companies.

While the growth could be better, the shareholder returns are clearly good. So all things considered I'd venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Automotive Properties Real Estate Investment Trust.

If you want to buy a stock that is better than Automotive Properties Real Estate Investment 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.

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.