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Here's What We Think About Innergex Renewable Energy Inc.'s (TSE:INE) CEO Pay

Simply Wall St

Michel Letellier became the CEO of Innergex Renewable Energy Inc. (TSE:INE) in 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Innergex Renewable Energy

How Does Michel Letellier's Compensation Compare With Similar Sized Companies?

Our data indicates that Innergex Renewable Energy Inc. is worth CA$2.2b, and total annual CEO compensation was reported as CA$1.4m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$537k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from CA$1.3b to CA$4.2b, and the median CEO total compensation was CA$2.9m.

A first glance this seems like a real positive for shareholders, since Michel Letellier is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.

You can see a visual representation of the CEO compensation at Innergex Renewable Energy, below.

TSX:INE CEO Compensation, October 28th 2019

Is Innergex Renewable Energy Inc. Growing?

On average over the last three years, Innergex Renewable Energy Inc. has grown earnings per share (EPS) by 12% each year (using a line of best fit). Its revenue is up 40% over last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Innergex Renewable Energy Inc. Been A Good Investment?

Innergex Renewable Energy Inc. has generated a total shareholder return of 27% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

It looks like Innergex Renewable Energy Inc. pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Michel Letellier is paid too much. It's great to see a company that pays its CEO reasonably, even while growing. It would be an additional positive if insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Innergex Renewable Energy shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.