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Why Brandywine Realty Trust’s (NYSE:BDN) CEO Pay Matters To You

Jerry Sweeney has been the CEO of Brandywine Realty Trust (NYSE:BDN) since 1994. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Brandywine Realty Trust

How Does Jerry Sweeney’s Compensation Compare With Similar Sized Companies?

According to our data, Brandywine Realty Trust has a market capitalization of US$2.5b, and pays its CEO total annual compensation worth US$4.6m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$700k. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$5.1m.

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So Jerry Sweeney is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Brandywine Realty Trust has changed over time.

NYSE:BDN CEO Compensation December 19th 18
NYSE:BDN CEO Compensation December 19th 18

Is Brandywine Realty Trust Growing?

Brandywine Realty Trust has increased its earnings per share (EPS) by an average of 100% a year, over the last three years Its revenue is up 3.1% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Brandywine Realty Trust Been A Good Investment?

Brandywine Realty Trust has served shareholders reasonably well, with a total return of 15% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Jerry Sweeney is paid around what is normal the leaders of comparable size companies.

We would wish for better returns (whether dividends or capital gains) but we do admire the solid EPS growth on show here. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Brandywine Realty Trust (free visualization of insider trades).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.