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The CEO Of Timbercreek Financial Corp. (TSE:TF) Might See A Pay Rise On The Horizon
Key Insights
- Timbercreek Financial's Annual General Meeting to take place on 7th of May
- Salary of CA$115.1k is part of CEO Robert Tamblyn's total remuneration
- The overall pay is 78% below the industry average
- Timbercreek Financial's EPS grew by 3.1% over the past three years while total shareholder return over the past three years was 3.8%
Shareholders will probably not be disappointed by the robust results at Timbercreek Financial Corp. (TSE:TF) recently and they will be keeping this in mind as they go into the AGM on 7th of May. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.
Check out our latest analysis for Timbercreek Financial
How Does Total Compensation For Robert Tamblyn Compare With Other Companies In The Industry?
According to our data, Timbercreek Financial Corp. has a market capitalization of CA$579m, and paid its CEO total annual compensation worth CA$232k over the year to December 2024. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$115k.
On examining similar-sized companies in the Canadian Diversified Financial industry with market capitalizations between CA$277m and CA$1.1b, we discovered that the median CEO total compensation of that group was CA$1.0m. Accordingly, Timbercreek Financial pays its CEO under the industry median. Moreover, Robert Tamblyn also holds CA$1.5m worth of Timbercreek Financial stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2024 | 2023 | Proportion (2024) |
Salary | CA$115k | CA$96k | 50% |
Other | CA$117k | CA$135k | 50% |
Total Compensation | CA$232k | CA$231k | 100% |
On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Our data reveals that Timbercreek Financial 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.
A Look at Timbercreek Financial Corp.'s Growth Numbers
Timbercreek Financial Corp.'s earnings per share (EPS) grew 3.1% per year over the last three years. Its revenue is down 17% over the previous year.
We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Timbercreek Financial Corp. Been A Good Investment?
Timbercreek Financial Corp. has generated a total shareholder return of 3.8% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
In Summary...
Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
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. We've identified 2 warning signs for Timbercreek Financial that investors should be aware of in a dynamic business environment.
Important note: Timbercreek Financial 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.
Valuation is complex, but we're here to simplify it.
Discover if Timbercreek Financial might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About TSX:TF
Timbercreek Financial
Provides shorter-duration structured financing solutions to commercial real estate investors in Canada.
Good value with moderate growth potential.
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