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In 2007, Louis Vachon was appointed Chief Executive Officer of National Bank of Canada (TSE: NA). This analysis first aims to contrast the remuneration of CEOs with other large companies. After that, we will look at the growth of the company. Third, we will consider total shareholder return over three years as a second measure of corporate performance. This process should give us an idea of ​​the appropriate compensation for the CEO.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Discover our latest analyzes for National Bank of Canada "data-reactid =" 29 "> Discover our latest analyzes for National Bank of Canada

How does Louis Vachon's compensation compare to similarly sized companies?

According to our data, National Bank of Canada has a market capitalization of $ 21 billion and pays its chief executive officer a total annual compensation of $ 9.3 million. (This number is for the twelve months up to 2017). We think the total compensation is higher, but we note that the CEO's salary is lower at $ 1.1 million. When we examined a group of companies with a market capitalization greater than C $ 11 billion, we found that their median compensation for CEOs was C $ 8.6 million. (We chose a wide range because CEOs of large companies tend to receive similar amounts, although some are a little bigger than others).

So, Louis Vachon is paid about the average of the companies we examined. It does not tell us much about it alone, but reviewing the company's performance will give us a useful context.

You can see a visual representation of the CEO's compensation at National Bank of Canada, below.

TSX: NA CEO Compensation, February 10, 19

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Is the National Bank of Canada growing?

National Bank of Canada has increased earnings per share (EPS) by an average of 18% per year over the last three years (using a best fit line). In the past year, his income has increased by 7.5%.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Overall, it's all about" a positive result for shareholders, showing It's also good to see modest revenue growth, suggesting that the underlying business is healthy.You can check out this free visual report on analyst forecasts "data-reactid =" 48 "> Overall, this is a positive result for shareholders, which shows that the company has improved in recent years. It is also good to see growth modest income, suggesting that the underlying business is healthy. want to check this free visual report on analyst forecasts for future earnings.

Has National Bank of Canada been a good investment?

I think the total shareholder return of 90% over three years would leave a smile on the face of most shareholders of National Bank of Canada. This strong performance could mean that some shareholders are not worried if the CEO should be paid more than normal for a company of this size.

In summary…

Louis Vachon is paid around what is normal among corporate executives.

The company's earnings per share increase and the total returns for shareholders have been satisfactory. Although the salary is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you can check if insiders buy shares of National Bank of Canada with their own money (free access).

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Important note: National Bank of Canada may not be the best stock to buy. You could find something better in this list of interesting companies with high ROE and low debt. "data-reactid =" 54 ">Important note: National Bank of Canada may not be the best stock to buy. You could find something better in this list of interesting companies with high ROE and low debt.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To help readers understand the past volatility of the financial market in the short term, our goal is to provide you with a long-term research analysis based solely on fundamental data. Note that our analysis does not take into account the latest price sensitive business announcements.

The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that need to be corrected, please contact the publisher at editorial-team@simplywallst.com.

"data-reactid =" 55 "> To help readers overcome the short-term volatility of the financial market, we aim to present a long-term research analysis based on fundamental data only. account of the latest price sensitive business announcements.

The author is an independent contributor and, at the time of publication, was not positioned in the actions mentioned. For errors that need to be corrected, please contact the publisher at editorial-team@simplywallst.com.