Mike Pyle became the CEO of Exchange Income Corporation (TSE:EIF) in 2006. 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 – 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 Mike Pyle’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Exchange Income Corporation has a market cap of CA$839m, and reported total annual CEO compensation of CA$2.2m for the year to December 2019. That’s a modest increase of 3.0% on the prior year year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$746k. 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$281m to CA$1.1b. The median total CEO compensation was CA$1.7m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it’s no different in the case of Exchange Income. On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Exchange Income pays out 34% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.
It would therefore appear that Exchange Income Corporation pays Mike Pyle more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. The graphic below shows how CEO compensation at Exchange Income has changed from year to year.
Is Exchange Income Corporation Growing?
Over the last three years Exchange Income Corporation has seen earnings per share (EPS) move in a positive direction by an average of 2.8% per year (using a line of best fit). Its revenue is up 9.5% over last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. You might want to check this free visual report on analyst forecasts for future earnings.
Has Exchange Income Corporation Been A Good Investment?
With a three year total loss of 16%, Exchange Income Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Exchange Income Corporation, and compared it to remuneration at a group…
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