Shareholders Will Probably Hold Off On Increasing Intact Financial Corporation's (TSE:IFC) CEO Compensation For The Time Being

Key Insights

• Intact Financial will host its Annual General Meeting on 7th of May
• Total pay for CEO Charles Joseph Brindamour includes CA$1.41m salary
• The overall pay is 40% above the industry average
• Over the past three years, Intact Financial's EPS fell by 0.07% and over the past three years, the total shareholder return was 84%

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Despite strong share price growth of 84% for Intact Financial Corporation (TSE:IFC) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 7th of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Intact Financial

Comparing Intact Financial Corporation's CEO Compensation With The Industry

Our data indicates that Intact Financial Corporation has a market capitalization of CA$54b, and total annual CEO compensation was reported as CA$18m for the year to December 2024. We note that's an increase of 17% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$1.4m.

On comparing similar companies in the Canadian Insurance industry with market capitalizations above CA$11b, we found that the median total CEO compensation was CA$13m. This suggests that Charles Joseph Brindamour is paid more than the median for the industry. Furthermore, Charles Joseph Brindamour directly owns CA$130m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CA$1.4m	CA$1.3m	8%
Other	CA$16m	CA$14m	92%
Total Compensation	CA$18m	CA$15m	100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. Intact Financial sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Intact Financial Corporation's Growth Numbers

Earnings per share at Intact Financial Corporation are much the same as they were three years ago, albeit slightly lower. In the last year, its revenue is up 1.0%.

The lack of EPS growth is certainly uninspiring. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Intact Financial Corporation Been A Good Investment?

Boasting a total shareholder return of 84% over three years, Intact Financial Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us question whether these strong returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Intact Financial that investors should look into moving forward.

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. 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.