What Did Inter Pipeline Ltd’s (TSE:IPL) CEO Take Home Last Year?
Chris Bayle became the CEO of Inter Pipeline Ltd (TSE:IPL) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
Check out our latest analysis for Inter Pipeline
How Does Chris Bayle’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Inter Pipeline Ltd has a market cap of CA$8.9b, and is paying total annual CEO compensation of CA$4m. Notably, that’s an increase of 11% over the year before. We examined companies with market caps from CA$5.2b to CA$15.7b, and discovered that the median CEO compensation of that group was CA$5m.
So Chris Bayle 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.
You can see, below, how CEO compensation at Inter Pipeline has changed over time.
Is Inter Pipeline Ltd Growing?
Inter Pipeline Ltd has increased its earnings per share (EPS) by an average of 8.4% a year, over the last three years In the last year, its revenue is up 17%.
I think the revenue growth is good. And the modest growth in earnings per share isn’t bad, either. Although we’ll stop short of calling the stock a top performer, we think the company has potential.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Inter Pipeline Ltd Been A Good Investment?
Inter Pipeline Ltd has not done too badly by shareholders, with a total return of 9.5%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
Chris Bayle is paid around what is normal the leaders of comparable size companies.
The company isn’t showing particularly great growth, and shareholder turns haven’t been particularly inspiring in the last few years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. So you may want to check if insiders are buying Inter Pipeline Ltd shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past 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.
