In 2008 Charles Brindamour was appointed CEO of Intact Financial Corporation (TSE:IFC). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Charles Brindamour’s Compensation Compare With Similar Sized Companies?
According to our data, Intact Financial Corporation has a market capitalization of CA$15b, and pays its CEO total annual compensation worth CA$7.8m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$1.2m. When we examined a group of companies with market caps over CA$11b, we found that their median CEO compensation was CA$8.7m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
That means Charles Brindamour receives fairly typical remuneration for the CEO of a large company. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Intact Financial has changed over time.
Is Intact Financial Corporation Growing?
On average over the last three years, Intact Financial Corporation has grown earnings per share (EPS) by 2.8% each year (using a line of best fit). In the last year, its revenue is up 15%.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Intact Financial Corporation Been A Good Investment?
Most shareholders would probably be pleased with Intact Financial Corporation for providing a total return of 36% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Charles Brindamour is paid around what is normal the leaders of larger companies.
While the growth could be better, the shareholder returns are clearly good. So all things considered I’d venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Intact Financial (free visualization of insider trades).
If you want to buy a stock that is better than Intact Financial, this free list of high return, low debt companies is a great place to look.
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