This Is Why Atrium Mortgage Investment Corporation's (TSE:AI) CEO Compensation Looks Appropriate

Key Insights

• Atrium Mortgage Investment's Annual General Meeting to take place on 15th of May
• Total pay for CEO Rob Goodall includes CA$470.0k salary
• The total compensation is similar to the average for the industry
• Atrium Mortgage Investment's EPS grew by 7.9% over the past three years while total shareholder return over the past three years was 6.0%

CEO Rob Goodall has done a decent job of delivering relatively good performance at Atrium Mortgage Investment Corporation (TSE:AI) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. We present our case of why we think CEO compensation looks fair.

Check out 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$494m, and paid its CEO total annual compensation worth CA$1.0m over the year to December 2023. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$470k.

In comparison with other companies in the Canadian Diversified Financial industry with market capitalizations ranging from CA$275m to CA$1.1b, the reported median CEO total compensation was CA$1.4m. So it looks like Atrium Mortgage Investment compensates Rob Goodall in line with the median for the industry. What's more, Rob Goodall holds CA$10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CA$470k	CA$465k	46%
Other	CA$548k	CA$548k	54%
Total Compensation	CA$1.0m	CA$1.0m	100%

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. In Atrium Mortgage Investment's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Atrium Mortgage Investment Corporation's Growth Numbers

Over the past three years, Atrium Mortgage Investment Corporation has seen its earnings per share (EPS) grow by 7.9% per year. It achieved revenue growth of 5.9% over the last year.

We'd prefer higher revenue growth, but we're 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Atrium Mortgage Investment Corporation Been A Good Investment?

With a total shareholder return of 6.0% over three years, Atrium Mortgage Investment Corporation has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Atrium Mortgage Investment (1 can't be ignored!) that you should be aware of before investing here.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.