In This Article:
Duncan Davies has been the CEO of Interfor Corporation (TSE:IFP) since 2000. First, this article will compare CEO compensation with compensation at similar sized 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Interfor
How Does Duncan Davies's Compensation Compare With Similar Sized Companies?
Our data indicates that Interfor Corporation is worth CA$819m, and total annual CEO compensation is CA$4.3m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$825k. When we examined a selection of companies with market caps ranging from CA$532m to CA$2.1b, we found the median CEO total compensation was CA$2.2m.
Thus we can conclude that Duncan Davies receives more in total compensation than the median of a group of companies in the same market, and of similar size to Interfor Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Interfor, below.
Is Interfor Corporation Growing?
Interfor Corporation has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). Its revenue is down -9.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has Interfor Corporation Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Interfor Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Interfor Corporation, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Whatever your view on compensation, you might want to check if insiders are buying or selling Interfor shares (free trial).