It is unlikely that the CEO of H&R Real Estate Investment Trust (TSE: HR.UN) will see huge salary increases this year

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Anemic growth in the value of shares on H&R Real Estate Investment Fund (TSE: HR.UN) over the past few years, probably did not make an impression on shareholders and, possibly, due to the fact that profits did not grow during this period. Some of these issues will be on the minds of shareholders as the AGM is held on June 29, 2021. One way that shareholders can influence management decisions is by voting on the compensation packages for the CEO and senior management, which studies show can affect the company’s bottom line. In our analysis below, we show why shareholders might consider deferring an increase in CEO pay until the company’s performance improves.

Check out our latest analysis for the H&R Real Estate Investment Trust

How does Tom Hofstedter’s total compensation compare to other companies in the industry?

Our data shows that the market capitalization of H&R Real Estate Investment Trust is CAD 5.0 ​​billion and the total annual CEO remuneration for the year to December 2020 was CAD 3.6 million. This is a slight decline of 6.5% over the previous year. While we always look at the total compensation first, our analysis shows that the pay component is lower at CAD 1.2 million.

Compared to other companies in the industry with market caps between C $ 2.5 billion and C $ 7.9 billion, the average CEO remuneration was C $ 2.5 million. Therefore, we can conclude that Tom Hofstedter is paid above the industry average. Additionally, Tom Hofstedter directly owns C $ 61 million in shares of the company, which means they are deeply invested in the company’s success.

Component

Feb 2020

Dec 2019

Proportion (2020)

Salary

1.2 million Canadian dollars

1.2 million Canadian dollars

33%

Other

2.4 million Canadian dollars

2.7 million Canadian dollars

67%

Full compensation

3.6 million Canadian dollars

CAD 3.9 Million

100%

In terms of industry, salaries accounted for approximately 36% of the total compensation of all companies we analyzed, while other compensation accounted for 64% of the total. There is no significant difference between H&R Real Estate Investment Trust and the broader market in terms of the distribution of wages in the overall compensation package. If the total compensation tends towards non-payroll payments, this indicates that the CEO’s pay is related to the company’s performance.

CEO

CEO

H&R Real Estate Investment Trust Growth Rates at a Glance

Funds from H&R Real Estate Investment Trust (FFO) operations have deteriorated further this year, at C $ 16 million in the latest update, up from last year’s FFO of C $ 841,000. Its revenue fell 1.7% from a year ago.

It’s a little disappointing that the company failed to grow. This is compounded by the fact that revenue has actually declined from last year. It is difficult to argue that the company is operating at full capacity, so shareholders may be opposed to the high compensation of the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the future income of the company.

Was the H&R Real Estate Investment Trust a good investment?

H&R Real Estate Investment Trust has generated a total shareholder return of 0.02% over three years, so most shareholders won’t be too disappointed. Although there is always room for improvement. Accordingly, a proposal to increase CEO compensation without improving shareholder returns may not meet with the approval of a majority of shareholders.

Eventually…

While it is true that the rise in stock prices was not bad, it is hard not to notice the lack of profit growth, and this makes us doubt if there will be any strong catalyst for the improvement in the stock. Shareholders should make the most of the upcoming opportunity to ask the board of directors questions on key issues they may have and to revise their investment theses regarding the company.

We can learn a lot about a company by examining its CEO remuneration trends as well as examining other aspects of the business. We defined 3 warning signs for H&R Real Estate Investment Trust (2 don’t sit too well with us!) What you should be aware of before investing here.

If you want a flawless balance sheet and premium income, then this will help you switch to H&R Real Estate Investment Trust. is free The list of high yield and low debt companies is a great place to look.

This article by Simply Wall St is general in nature. It is not a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not include the latest announcements from price-sensitive companies or quality content. Simply Wall St has no position in any of the mentioned promotions.

Have any feedback on this article? Concerned about the content? Contact with us directly. You can also email the revision (at) simplewallst.com.

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