CEO Peter Baccile has done a decent job of delivering relatively good performance at First Industrial Realty Trust, Inc. (NYSE:FR) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 05 May 2021. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for First Industrial Realty Trust
How Does Total Compensation For Peter Baccile Compare With Other Companies In The Industry?
Our data indicates that First Industrial Realty Trust, Inc. has a market capitalization of US$6.4b, and total annual CEO compensation was reported as US$7.1m for the year to December 2020. That’s a notable increase of 63% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$850k.
On examining similar-sized companies in the industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$6.0m. So it looks like First Industrial Realty Trust compensates Peter Baccile in line with the median for the industry. What’s more, Peter Baccile holds US$2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. First Industrial Realty 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.
NYSE:FR CEO Compensation April 29th 2021
A Look at First Industrial Realty Trust, Inc.’s Growth Numbers
First Industrial Realty Trust, Inc. has seen its funds from operations (FFO) increase by 7.6% per year over the past three years. In the last year, its revenue is up 4.1%.
We would argue that the improvement in revenue is good, but isn’t particularly impressive, but we’re happy with the modest FFO growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information. 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 First Industrial Realty Trust, Inc. Been A Good Investment?
We think that the total shareholder return of 70%, over three years, would leave most First Industrial Realty Trust, Inc. shareholders smiling. 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.
The company’s decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for First Industrial Realty Trust (2 shouldn’t be ignored!) that you should be aware of before investing here.
Switching gears from First Industrial Realty 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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