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Scott Antoniak has been the CEO of Slate Office REIT (TSE:SOT.UN) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
See our latest analysis for Slate Office REIT
How Does Scott Antoniak's Compensation Compare With Similar Sized Companies?
Our data indicates that Slate Office REIT is worth CA$433m, and total annual CEO compensation is CA$700k. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CA$300k. We looked at a group of companies with market capitalizations from CA$269m to CA$1.1b, and the median CEO total compensation was CA$1.3m.
A first glance this seems like a real positive for shareholders, since Scott Antoniak is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Slate Office REIT has changed from year to year.
Is Slate Office REIT Growing?
Over the last three years Slate Office REIT has shrunk its earnings per share by an average of 5.2% per year (measured with a line of best fit). In the last year, its revenue is up 38%.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Slate Office REIT Been A Good Investment?
With a three year total loss of 2.4%, Slate Office REIT would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It appears that Slate Office REIT remunerates its CEO below most similar sized companies.
Scott Antoniak receives relatively low remuneration compared to similar sized companies. But the company isn't exactly firing on all cylinders, and returns over three years are not good. So while shareholders shouldn't be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Slate Office REIT (free visualization of insider trades).