Is Polaris Infrastructure Inc’s (TSE:PIF) CEO Incentives Align With Yours?

Marc Murnaghan became the CEO of Polaris Infrastructure Inc (TSE:PIF) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Polaris Infrastructure

How Does Marc Murnaghan’s Compensation Compare With Similar Sized Companies?

According to our data, Polaris Infrastructure Inc has a market capitalization of CA$168m, and pays its CEO total annual compensation worth US$748k. That’s a notable increase of 45% on last year. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$116k.

It would therefore appear that Polaris Infrastructure Inc pays Marc Murnaghan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

Is Polaris Infrastructure Inc Growing?

Over the last three years Polaris Infrastructure Inc has grown its earnings per share (EPS) by an average of 134% per year. It achieved revenue growth of 6.7% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Polaris Infrastructure Inc Been A Good Investment?

Polaris Infrastructure Inc has served shareholders reasonably well, with a total return of 10% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We the total CEO remuneration paid by Polaris Infrastructure Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn’t call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Polaris Infrastructure Inc.

Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.

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.