Does Intact Financial Corporation's (TSE:IFC) CEO Pay Reflect Performance?

Charles J. Brindamour has been the CEO of Intact Financial Corporation (TSE:IFC) since 2008. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Intact Financial

How Does Charles J. Brindamour's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Intact Financial Corporation has a market cap of CA$18b, and reported total annual CEO compensation of CA$9.1m for the year to December 2019. That's just a smallish increase of 7.1% on last year. We think total compensation is more important but we note that the CEO salary is lower, at CA$1.3m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations over CA$11b, and calculated the median CEO total compensation to be CA$9.4m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Intact Financial. On a sector level, around 23% of total compensation represents salary and 77% is other remuneration. Readers will want to know that Intact Financial pays a modest slice of remuneration through salary, as compared to the wider sector.

So Charles J. Brindamour is paid around the average of 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. You can see, below, how CEO compensation at Intact Financial has changed over time.

Is Intact Financial Corporation Growing?

Intact Financial Corporation saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is up 6.7%.

I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.

Has Intact Financial Corporation Been A Good Investment?

Most shareholders would probably be pleased with Intact Financial Corporation for providing a total return of 49% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Charles J. Brindamour is paid around what is normal for the leaders of larger companies.

While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Looking into other areas, we've picked out 2 warning signs for Intact Financial that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.