What Did Canadian Imperial Bank of Commerce’s (TSE:CM) CEO Take Home Last Year?
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Victor Dodig became the CEO of Canadian Imperial Bank of Commerce (TSE:CM) in 2014. 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.
Check out our latest analysis for Canadian Imperial Bank of Commerce
How Does Victor Dodig’s Compensation Compare With Similar Sized Companies?
Our data indicates that Canadian Imperial Bank of Commerce is worth CA$49b, and total annual CEO compensation is CA$9.4m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$1.0m. When we examined a group of companies with market caps over CA$11b, we found that their median CEO compensation was CA$8.6m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Victor Dodig is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Canadian Imperial Bank of Commerce has changed from year to year.
Is Canadian Imperial Bank of Commerce Growing?
Over the last three years Canadian Imperial Bank of Commerce has grown its earnings per share (EPS) by an average of 7.9% per year (using a line of best fit). It achieved revenue growth of 9.8% over the last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Canadian Imperial Bank of Commerce Been A Good Investment?
I think that the total shareholder return of 43%, over three years, would leave most Canadian Imperial Bank of Commerce shareholders smiling. 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.
In Summary…
Victor Dodig is paid around what is normal the leaders of larger companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. So you may want to check if insiders are buying Canadian Imperial Bank of Commerce shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.
