Should You Worry About Indigo Books & Music Inc’s (TSE:IDG) CEO Pay Check?

Heather Reisman has been the CEO of Indigo Books & Music Inc (TSE:IDG) since 2001. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Indigo Books & Music

How Does Heather Reisman’s Compensation Compare With Similar Sized Companies?

Our data indicates that Indigo Books & Music Inc is worth CA$370m, and total annual CEO compensation is CA$763k. That’s below the compensation, last year. We examined companies with market caps from CA$131m to CA$525m, and discovered that the median CEO compensation of that group was CA$884k.

So Heather Reisman is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Indigo Books & Music has changed from year to year.

TSX:IDG CEO Compensation November 7th 18
TSX:IDG CEO Compensation November 7th 18

Is Indigo Books & Music Inc Growing?

Over the last three years Indigo Books & Music Inc has grown its earnings per share (EPS) by an average of 6.8% per year. In the last year, its revenue is up 4.4%.

I would argue that the improvement in revenue isn’t particularly impressive, but I’m happy with the modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing. So this free visual report on analyst forecasts could hold they key to an excellent investment decision.

Has Indigo Books & Music Inc Been A Good Investment?

Indigo Books & Music Inc has generated a total shareholder return of 5.9% over three years, so most shareholders wouldn’t be too disappointed. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

Heather Reisman is paid around the same as most CEOs of similar size companies.

We see room for improved growth, as well as fairly unremarkable returns over the last three years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. I like to look well beyond the CEO remuneration, when I research a company. So savvy investors often note how long the Chairman of the Board has been in that position.

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.