How Does Brixmor Property Group's (NYSE:BRX) CEO Salary Compare to Peers?

This article will reflect on the compensation paid to Jim Taylor who has served as CEO of Brixmor Property Group Inc. (NYSE:BRX) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent funds from operations growth and investor returns for Brixmor Property Group.

View our latest analysis for Brixmor Property Group

Comparing Brixmor Property Group Inc.'s CEO Compensation With the industry

According to our data, Brixmor Property Group Inc. has a market capitalization of US$3.7b, and paid its CEO total annual compensation worth US$6.2m over the year to December 2019. That's a notable increase of 23% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$923k.

On examining similar-sized companies in the industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$5.6m. From this we gather that Jim Taylor is paid around the median for CEOs in the industry. Furthermore, Jim Taylor directly owns US$3.9m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. There isn't a significant difference between Brixmor Property Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Brixmor Property Group Inc.'s Growth Numbers

Brixmor Property Group Inc. has reduced its funds from operations (FFO) by 6.8% per year over the last three years. It saw its revenue drop 5.9% over the last year.

The decline in FFO is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Brixmor Property Group Inc. Been A Good Investment?

Since shareholders would have lost about 21% over three years, some Brixmor Property Group Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Jim is compensated close to the median for companies of its size, and which belong to the same industry. In the meantime, the company has reported declining FFO growth and shareholder returns over the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is concerning) in Brixmor Property Group we think you should know about.

Switching gears from Brixmor Property Group, 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.

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. 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.

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