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Does Atrium Mortgage Investment Corporation's (TSE:AI) CEO Salary Compare Well With Others?

Rob Goodall became the CEO of Atrium Mortgage Investment Corporation (TSE:AI) in 1994. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Atrium Mortgage Investment

How Does Rob Goodall's Compensation Compare With Similar Sized Companies?

Our data indicates that Atrium Mortgage Investment Corporation is worth CA$546m, and total annual CEO compensation was reported as CA$945k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$400k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$267m to CA$1.1b. The median total CEO compensation was CA$1.4m.

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This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Atrium Mortgage Investment, below.

TSX:AI CEO Compensation, October 8th 2019
TSX:AI CEO Compensation, October 8th 2019

Is Atrium Mortgage Investment Corporation Growing?

Over the last three years, Atrium Mortgage Investment Corporation has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. It achieved revenue growth of 13% over the last year.

Unfortunately there is a complete lack of earnings per share improvement, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Atrium Mortgage Investment Corporation Been A Good Investment?

I think that the total shareholder return of 42%, over three years, would leave most Atrium Mortgage Investment Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It appears that Atrium Mortgage Investment Corporation remunerates its CEO below most similar sized companies.

Rob Goodall receives relatively low remuneration compared to similar sized companies. And while the company isn't growing earnings per share, total returns have been pleasing. So, while it would be nice to have EPS growth, on our analysis the CEO compensation is not an issue. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Atrium Mortgage Investment (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.