Matt Lambiase has been the CEO of Chimera Investment Corporation (NYSE:CIM) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
How Does Matt Lambiase's Compensation Compare With Similar Sized Companies?
Our data indicates that Chimera Investment Corporation is worth US$3.6b, and total annual CEO compensation is US$6.7m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$750k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$5.2m.
So Matt Lambiase is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Chimera Investment has changed over time.
Is Chimera Investment Corporation Growing?
Chimera Investment Corporation has increased its earnings per share (EPS) by an average of 4.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -34%.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. It could be important to check this free visual depiction of what analysts expect for the future.
Has Chimera Investment Corporation Been A Good Investment?
Boasting a total shareholder return of 62% over three years, Chimera Investment Corporation has done well by shareholders. 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.
Matt Lambiase is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So considering most shareholders would be happy, we'd say the CEO pay is appropriate. Shareholders may want to check for free if Chimera Investment insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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