Should You Worry About Bridgemarq Real Estate Services Inc.'s (TSE:BRE) CEO Salary Level?

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Phil Soper is the CEO of Bridgemarq Real Estate Services Inc. (TSE:BRE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Bridgemarq Real Estate Services

How Does Phil Soper's Compensation Compare With Similar Sized Companies?

According to our data, Bridgemarq Real Estate Services Inc. has a market capitalization of CA$185m, and pays its CEO total annual compensation worth CA$407k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$250k. We looked at a group of companies with market capitalizations under CA$261m, and the median CEO total compensation was CA$120k.

It would therefore appear that Bridgemarq Real Estate Services Inc. pays Phil Soper more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Bridgemarq Real Estate Services has changed from year to year.

TSX:BRE CEO Compensation, July 18th 2019
TSX:BRE CEO Compensation, July 18th 2019

Is Bridgemarq Real Estate Services Inc. Growing?

Bridgemarq Real Estate Services Inc. has increased its earnings per share (EPS) by an average of 32% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -6.2%.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bridgemarq Real Estate Services Inc. Been A Good Investment?

With a total shareholder return of 22% over three years, Bridgemarq Real Estate Services Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared total CEO remuneration at Bridgemarq Real Estate Services Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Bridgemarq Real Estate Services (free visualization of insider trades).

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.

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.

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. Thank you for reading.

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