How Much Is Timbercreek Financial Corp. (TSE:TF) Paying Its CEO?

Cam Goodnough has been the CEO of Timbercreek Financial Corp. (TSE:TF) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Timbercreek Financial.

See our latest analysis for Timbercreek Financial

Comparing Timbercreek Financial Corp.'s CEO Compensation With the industry

According to our data, Timbercreek Financial Corp. has a market capitalization of CA$686m, and paid its CEO total annual compensation worth CA$330k over the year to December 2019. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at CA$170.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between CA$268m and CA$1.1b had a median total CEO compensation of CA$1.6m. This suggests that Cam Goodnough is paid below the industry median.

Talking in terms of the industry, salary represented approximately 47% of total compensation out of all the companies we analyzed, while other remuneration made up 53% of the pie. Our data reveals that Timbercreek Financial allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Timbercreek Financial Corp.'s Growth Numbers

Over the last three years, Timbercreek Financial Corp. has shrunk its earnings per share by 9.2% per year. It saw its revenue drop 5.5% over the last year.

Few shareholders would be pleased to read that earnings have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Timbercreek Financial Corp. Been A Good Investment?

Timbercreek Financial Corp. has served shareholders reasonably well, with a total return of 12% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, Timbercreek Financial pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Shareholder returns have been uninspiring, but earnings growth has arguably been worse, over the last three years. It's tough for us to say that Cam is earning a high compensation, but any bump in pay is unlikely at this stage since shareholders will likely hold off support until performance improves.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Timbercreek Financial that you should be aware of before investing.

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.
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