Victor Dodig has been the CEO of Canadian Imperial Bank of Commerce (TSE:CM) since 2014. This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. 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 Victor Dodig's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Canadian Imperial Bank of Commerce has a market cap of CA$45b, and is paying total annual CEO compensation of CA$10m. (This is based on the year to October 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$1.0m. We took a group of companies with market capitalizations over CA$11b, and calculated the median CEO total compensation to be CA$9.1m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Victor Dodig is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Canadian Imperial Bank of Commerce, below.
Is Canadian Imperial Bank of Commerce Growing?
On average over the last three years, Canadian Imperial Bank of Commerce has grown earnings per share (EPS) by 3.9% each year (using a line of best fit). In the last year, its revenue is up 3.7%.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. 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?
With a total shareholder return of 16% over three years, Canadian Imperial Bank of Commerce shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Victor Dodig is paid around what is normal the leaders of larger companies.
We think many would like to see better growth. But we don't think the CEO compensation is a problem. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Canadian Imperial Bank of Commerce.
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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