Yahoo Finance Does Interfor Corporation’s (TSE:IFP) CEO Salary Reflect Performance?
Duncan Davies became the CEO of Interfor Corporation (TSE:IFP) in 2000. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
See our latest analysis for Interfor
How Does Duncan Davies’s Compensation Compare With Similar Sized Companies?
Our data indicates that Interfor Corporation is worth CA$1.1b, and total annual CEO compensation is CA$3m. That’s a notable increase of 86% on last year. When we examined a selection of companies with market caps ranging from CA$524m to CA$2.1b, we found the median CEO compensation was CA$2m.
Thus we can conclude that Duncan Davies receives more in total compensation than the median of a group of companies in the same market, and of similar size to Interfor Corporation. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Interfor has changed over time.
Is Interfor Corporation Growing?
Over the last three years Interfor Corporation has grown its earnings per share (EPS) by an average of 94% per year. In the last year, its revenue is up 16%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Interfor Corporation Been A Good Investment?
Interfor Corporation has served shareholders reasonably well, with a total return of 31% 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…
We examined the amount Interfor Corporation pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. Shareholders may want to check for free if Interfor Corporation insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.
