Yahoo Finance What Did IGM Financial's (TSE:IGM) CEO Take Home Last Year?
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This article will reflect on the compensation paid to Jeff Carney who has served as CEO of IGM Financial Inc. (TSE:IGM) since 2013. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for IGM Financial.
Check out our latest analysis for IGM Financial
Comparing IGM Financial Inc.'s CEO Compensation With the industry
Our data indicates that IGM Financial Inc. has a market capitalization of CA$8.1b, and total annual CEO compensation was reported as CA$7.6m for the year to December 2019. That's a fairly small increase of 5.2% over the previous year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$1.3m.
In comparison with other companies in the industry with market capitalizations ranging from CA$5.4b to CA$16b, the reported median CEO total compensation was CA$8.2m. From this we gather that Jeff Carney is paid around the median for CEOs in the industry. Furthermore, Jeff Carney directly owns CA$430k worth of shares in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$1.3m | CA$1.3m | 17% |
Other | CA$6.4m | CA$6.0m | 83% |
Total Compensation | CA$7.6m | CA$7.3m | 100% |
On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. It's interesting to note that IGM Financial allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at IGM Financial Inc.'s Growth Numbers
IGM Financial Inc. has reduced its earnings per share by 1.5% a year over the last three years. It achieved revenue growth of 1.1% over the last year.
A lack of earnings per share improvement is not good to see. The modest increase in revenue in the last year isn't enough to make us 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has IGM Financial Inc. Been A Good Investment?
With a three year total loss of 0.8% for the shareholders, IGM Financial Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Jeff is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, earnings growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for IGM Financial that investors should look into moving forward.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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