Mike Pyle has been the CEO of Exchange Income Corporation (TSE:EIF) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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$1.5b, and reported total annual CEO compensation of CA$2.1m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$727k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from CA$532m to CA$2.1b, and the median CEO total compensation was CA$2.1m.
So Mike Pyle is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Exchange Income has changed over time.
Is Exchange Income Corporation Growing?
On average over the last three years, Exchange Income Corporation has grown earnings per share (EPS) by 3.4% each year (using a line of best fit). Its revenue is up 12% over last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. Although we’ll stop short of calling the stock a top performer, we think the company has potential. It could be important to check this free visual depiction of what analysts expect for the future.
Has Exchange Income Corporation Been A Good Investment?
Boasting a total shareholder return of 33% over three years, Exchange Income Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Mike Pyle is paid around what is normal the leaders of comparable size companies.
The company isn’t showing particularly great growth, but shareholder returns have been pleasing. So all things considered I’d venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Exchange Income (free visualization of insider trades).
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.
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