Yahoo Finance How Much is Polaris Infrastructure Inc.'s (TSE:PIF) CEO Getting Paid?
Marc Murnaghan has been the CEO of Polaris Infrastructure Inc. (TSE:PIF) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
View our latest analysis for Polaris Infrastructure
How Does Marc Murnaghan's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Polaris Infrastructure Inc. has a market cap of CA$175m, and reported total annual CEO compensation of US$496k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$227k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$170k.
It would therefore appear that Polaris Infrastructure Inc. pays Marc Murnaghan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Polaris Infrastructure, below.
Is Polaris Infrastructure Inc. Growing?
Polaris Infrastructure Inc. has increased its earnings per share (EPS) by an average of 91% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 8.5%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Polaris Infrastructure Inc. Been A Good Investment?
With a three year total loss of 11%, Polaris Infrastructure Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Polaris Infrastructure Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Polaris Infrastructure shares with their own money (free access).
If you want to buy a stock that is better than Polaris Infrastructure, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
