Eli Dadouch is the CEO of Firm Capital Mortgage Investment Corporation (TSE:FC). First, this article will compare CEO compensation with compensation at similar sized 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Eli Dadouch's Compensation Compare With Similar Sized Companies?
According to our data, Firm Capital Mortgage Investment Corporation has a market capitalization of CA$388m, and paid its CEO total annual compensation worth CA$1.8m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$133m to CA$533m. The median total CEO compensation was CA$906k.
Thus we can conclude that Eli Dadouch receives more in total compensation than the median of a group of companies in the same market, and of similar size to Firm Capital Mortgage Investment Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Firm Capital Mortgage Investment has changed over time.
Is Firm Capital Mortgage Investment Corporation Growing?
Over the last three years, Firm Capital Mortgage Investment Corporation has not seen its earnings per share change much, though they have deteriorated slightly, according to a line of best fit. It achieved revenue growth of 6.5% over the last year.
In the last three years the company has failed to grow earnings per share. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has Firm Capital Mortgage Investment Corporation Been A Good Investment?
Firm Capital Mortgage Investment Corporation has served shareholders reasonably well, with a total return of 25% over three years. 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.
We compared the total CEO remuneration paid by Firm Capital Mortgage Investment Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Earnings per share have not grown in three years, and the revenue growth fails to impress us. While shareholder returns are acceptable, they don't delight. So we think more research is needed, but we don't think the CEO underpaid. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Firm Capital Mortgage Investment.
If you want to buy a stock that is better than Firm Capital Mortgage Investment, this free list of high return, low debt companies is a great place to look.
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