Yahoo Finance Why NFI Group Inc.’s (TSE:NFI) CEO Pay Matters To You
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Paul Soubry has been the CEO of NFI Group Inc. (TSE:NFI) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
View our latest analysis for NFI Group
How Does Paul Soubry’s Compensation Compare With Similar Sized Companies?
Our data indicates that NFI Group Inc. is worth CA$2.0b, and total annual CEO compensation is US$3.1m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$775k. We looked at a group of companies with market capitalizations from CA$1.3b to CA$4.3b, and the median CEO compensation was CA$2.8m.
So Paul Soubry receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at NFI Group has changed from year to year.
Is NFI Group Inc. Growing?
NFI Group Inc. has increased its earnings per share (EPS) by an average of 38% a year, over the last three years (using a line of best fit). Its revenue is up 6.9% over last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has NFI Group Inc. Been A Good Investment?
I think that the total shareholder return of 47%, over three years, would leave most NFI Group Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary…
Paul Soubry is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling NFI Group shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
