Yahoo Finance Is Intact Financial Corporation (TSE:IFC) Excessively Paying Its CEO?
In 2008 Charles Brindamour was appointed CEO of Intact Financial Corporation (TSE:IFC). This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Intact Financial
How Does Charles Brindamour's Compensation Compare With Similar Sized Companies?
Our data indicates that Intact Financial Corporation is worth CA$15b, and total annual CEO compensation is CA$7.8m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$1.2m. We looked at a group of companies with market capitalizations over CA$11b and the median CEO total compensation was CA$8.5m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Charles Brindamour receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Intact Financial has changed over time.
Is Intact Financial Corporation Growing?
Over the last three years Intact Financial Corporation has grown its earnings per share (EPS) by an average of 2.8% per year (using a line of best fit). Its revenue is up 15% over last year.
I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Intact Financial Corporation Been A Good Investment?
Intact Financial Corporation has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Charles Brindamour is paid around the same as most CEOs of large companies.
We think many would like to see better growth. But we don't think the CEO compensation is a problem. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Intact Financial.
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.
