How Much Did Atrium Mortgage Investment's (TSE:AI) CEO Pocket Last Year?

Rob Goodall has been the CEO of Atrium Mortgage Investment Corporation (TSE:AI) since 1994, 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 Atrium Mortgage Investment.

See our latest analysis for Atrium Mortgage Investment

Comparing Atrium Mortgage Investment Corporation's CEO Compensation With the industry

According to our data, Atrium Mortgage Investment Corporation has a market capitalization of CA$457m, and paid its CEO total annual compensation worth CA$946k over the year to December 2019. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$400k.

On comparing similar companies from the same industry with market caps ranging from CA$267m to CA$1.1b, we found that the median CEO total compensation was CA$1.5m. That is to say, Rob Goodall is paid under the industry median. What's more, Rob Goodall holds CA$7.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 47% of total compensation represents salary, while the remainder of 53% is other remuneration. Our data reveals that Atrium Mortgage Investment allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Atrium Mortgage Investment Corporation's Growth

Earnings per share at Atrium Mortgage Investment Corporation are much the same as they were three years ago, albeit slightly lower. It achieved revenue growth of 10% over the last year.

Its a bit disappointing to see that the company has failed to grow its EPS. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. 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 Atrium Mortgage Investment Corporation Been A Good Investment?

Atrium Mortgage Investment Corporation has served shareholders reasonably well, with a total return of 11% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As we noted earlier, Atrium Mortgage Investment pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been unexciting, and EPS growth has fared even worse. We can't categorize CEO compensation as high, but shareholders might object to a raise at this stage, considering overall poor performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Atrium Mortgage Investment that investors should look into moving forward.

Important note: Atrium Mortgage Investment is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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