Mike Pyle has been the CEO of Exchange Income Corporation (TSE:EIF) since 2006, and this article will examine the executive’s compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Exchange Income
How Does Total Compensation For Mike Pyle Compare With Other Companies In The Industry?
According to our data, Exchange Income Corporation has a market capitalization of CA$1.2b, and paid its CEO total annual compensation worth CA$2.2m over the year to December 2019. That is, the compensation was roughly the same as last year. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at CA$746k.
On examining similar-sized companies in the industry with market capitalizations between CA$527m and CA$2.1b, we discovered that the median CEO total compensation of that group was CA$2.2m. From this we gather that Mike Pyle is paid around the median for CEOs in the industry. What’s more, Mike Pyle holds CA$596k worth of shares in the company in their own name.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | CA$746k | CA$727k | 34% |
| Other | CA$1.4m | CA$1.4m | 66% |
| Total Compensation | CA$2.2m | CA$2.1m | 100% |
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Exchange Income pays out 34% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it’s an indicator that the executive’s salary is tied to company performance.
Exchange Income Corporation’s Growth
Over the last three years, Exchange Income Corporation has shrunk its earnings per share by 12% per year. It achieved revenue growth of 1.7% over the last year.
Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Exchange Income Corporation Been A Good Investment?
Exchange Income Corporation has served shareholders reasonably well, with a total return of 21% 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.
In Summary…
As we touched on above, Exchange Income Corporation is currently paying a compensation that’s close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. According to our analysis, Exchange Income is suffering…
Go to the news source: How Does Exchange Income’s (TSE:EIF) CEO Salary Compare to Peers?
