Should You Worry About Polaris Infrastructure Inc.'s (TSE:PIF) CEO Salary Level?

In 2015 Marc Murnaghan was appointed CEO of Polaris Infrastructure Inc. (TSE:PIF). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

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

According to our data, Polaris Infrastructure Inc. has a market capitalization of CA$151m, and pays its CEO total annual compensation worth US$748k. (This is based on the year to 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$196k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$118k.

As you can see, Marc Murnaghan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Polaris Infrastructure Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance. So this freevisual report on analyst forecasts could hold they key to an excellent investment decision.

The graphic below shows how CEO compensation at Polaris Infrastructure has changed from year to year.

Is Polaris Infrastructure Inc. Growing?

Over the last three years Polaris Infrastructure Inc. has grown its earnings per share (EPS) by an average of 138% per year (using a line of best fit). In the last year, its revenue is up 9.7%.

This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.

Has Polaris Infrastructure Inc. Been A Good Investment?

I think that the total shareholder return of 51%, over three years, would leave most Polaris Infrastructure Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared total CEO remuneration at Polaris Infrastructure Inc. with the amount paid at companies with a similar market capitalization. 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. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Polaris Infrastructure.

If you want to buy a stock that is better than Polaris Infrastructure, this freelist of high return, low debt companies is a great place to look.

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.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.