Yahoo Finance How Should Investors Feel About Temple & Webster Group Ltd's (ASX:TPW) CEO Pay?
In 2016 Mark Coulter was appointed CEO of Temple & Webster Group Ltd (ASX:TPW). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Temple & Webster Group
How Does Mark Coulter's Compensation Compare With Similar Sized Companies?
According to our data, Temple & Webster Group Ltd has a market capitalization of AU$306m, and paid its CEO total annual compensation worth AU$831k over the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$324k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from AU$153m to AU$614m, we found the median CEO total compensation was AU$852k.
That means Mark Coulter receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Temple & Webster Group has changed over time.
Is Temple & Webster Group Ltd Growing?
On average over the last three years, Temple & Webster Group Ltd has grown earnings per share (EPS) by 133% each year (using a line of best fit). Its revenue is up 44% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has Temple & Webster Group Ltd Been A Good Investment?
Most shareholders would probably be pleased with Temple & Webster Group Ltd for providing a total return of 1214% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Mark Coulter is paid around what is normal for the leaders of comparable size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Looking into other areas, we've picked out 3 warning signs for Temple & Webster Group that investors should think about before committing capital to this stock.
Important note: Temple & Webster Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
