What We Learned About Tricon Residential's (TSE:TCN) CEO Compensation

Simply Wall St
·3-min read

Gary Berman has been the CEO of Tricon Residential Inc. (TSE:TCN) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Tricon Residential pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Tricon Residential

Comparing Tricon Residential Inc.'s CEO Compensation With the industry

Our data indicates that Tricon Residential Inc. has a market capitalization of CA$2.1b, and total annual CEO compensation was reported as US$5.2m for the year to December 2019. Notably, that's an increase of 65% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$622k.

In comparison with other companies in the industry with market capitalizations ranging from CA$1.3b to CA$4.2b, the reported median CEO total compensation was US$5.2m. So it looks like Tricon Residential compensates Gary Berman in line with the median for the industry. Moreover, Gary Berman also holds CA$14m worth of Tricon Residential stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

US$622k

US$618k

12%

Other

US$4.5m

US$2.5m

88%

Total Compensation

US$5.2m

US$3.1m

100%

On an industry level, around 54% of total compensation represents salary and 46% is other remuneration. It's interesting to note that Tricon Residential allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

A Look at Tricon Residential Inc.'s Growth Numbers

Tricon Residential Inc. has seen its earnings per share (EPS) increase by 28% a year over the past three years. It achieved revenue growth of 171% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Tricon Residential Inc. Been A Good Investment?

Tricon Residential Inc. has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

As we noted earlier, Tricon Residential pays its CEO in line with similar-sized companies belonging to the same industry. But EPS growth over the last three years has been impressive, although the same cannot be said for shareholder returns. Considering overall performance, we'd say the compensation is fair, although stockholders will want to see higher returns moving forward.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which is concerning) in Tricon Residential we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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