Here's What We Think About IBI Group's (TSE:IBG) CEO Pay

Scott Stewart has been the CEO of IBI Group Inc. (TSE:IBG) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether IBI Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for IBI Group

Comparing IBI Group Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that IBI Group Inc. has a market capitalization of CA$254m, and reported total annual CEO compensation of CA$1.3m for the year to December 2019. That's a fairly small increase of 7.4% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$626k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$130m and CA$521m had a median total CEO compensation of CA$2.0m. Accordingly, IBI Group pays its CEO under the industry median. What's more, Scott Stewart holds CA$2.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. Our data reveals that IBI Group allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at IBI Group Inc.'s Growth Numbers

Over the last three years, IBI Group Inc. has shrunk its earnings per share by 2.1% per year. Its revenue is up 4.7% over the last year.

The lack of EPS growth is certainly unimpressive. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has IBI Group Inc. Been A Good Investment?

With a three year total loss of 14% for the shareholders, IBI Group Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, IBI Group Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for IBI Group that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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