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Is Intact Financial Corporation’s (TSE:IFC) CEO Paid Enough To Stay Motivated?

In 2008 Charles Brindamour was appointed CEO of Intact Financial Corporation (TSE:IFC). This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. 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.

See our latest analysis for Intact Financial

How Does Charles Brindamour’s Compensation Compare With Similar Sized Companies?

Our data indicates that Intact Financial Corporation is worth CA$14.4b, and total annual CEO compensation is CA$8m. Notably, that’s an increase of 14% over the year before. We took a group of companies with market capitalizations over CA$10.5b, and calculated the median CEO compensation to be CA$9m.

So Charles Brindamour receives a similar amount to the median CEO pay, amongst 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 Intact Financial has changed from year to year.

TSX:IFC CEO Compensation November 6th 18

Is Intact Financial Corporation Growing?

Over the last three years, Intact Financial Corporation has not seen its earnings per share change much, though they have deteriorated slightly. It achieved revenue growth of 13% over the last year.

In the last three years the company has failed to grow earnings per s. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Intact Financial Corporation Been A Good Investment?

Intact Financial Corporation has served shareholders reasonably well, with a total return of 23% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

Charles Brindamour is paid around the same as most CEOs of large companies.

We’re not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We doubt shareholders are particularly happy to see that the CEO compensation increased on last year. We do not think the CEO pay is a problem, but we’d venture the company should look to improve its business metrics (and share price) before paying any more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Intact Financial Corporation.

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

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.