Yahoo Finance Tyler Technologies, Inc.'s (NYSE:TYL) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
Tyler Technologies' Annual General Meeting to take place on 9th of May
Total pay for CEO H. Moore includes US$675.0k salary
The overall pay is 48% below the industry average
Over the past three years, Tyler Technologies' EPS fell by 0.8% and over the past three years, the total shareholder return was 15%
Performance at Tyler Technologies, Inc. (NYSE:TYL) has been rather uninspiring recently and shareholders may be wondering how CEO H. Moore plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 9th of May. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.
See our latest analysis for Tyler Technologies
How Does Total Compensation For H. Moore Compare With Other Companies In The Industry?
Our data indicates that Tyler Technologies, Inc. has a market capitalization of US$19b, and total annual CEO compensation was reported as US$9.0m for the year to December 2023. Notably, that's an increase of 46% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$675k.
For comparison, other companies in the American Software industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$17m. Accordingly, Tyler Technologies pays its CEO under the industry median. What's more, H. Moore holds US$35m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$675k | US$600k | 7% |
Other | US$8.4m | US$5.6m | 93% |
Total Compensation | US$9.0m | US$6.2m | 100% |
On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. Tyler Technologies pays a modest slice of remuneration through salary, as compared 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.
Tyler Technologies, Inc.'s Growth
Tyler Technologies, Inc. saw earnings per share stay pretty flat over the last three years. In the last year, its revenue is up 6.8%.
Its a bit disappointing to see that the company has failed to grow its EPS. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Tyler Technologies, Inc. Been A Good Investment?
With a total shareholder return of 15% over three years, Tyler Technologies, Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Shareholder returns while positive, need to be looked at along with earnings, which have failed to grow and this could mean that the current momentum may not continue. These are are some concerns that shareholders may want to address the board when they revisit their investment thesis.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Tyler Technologies that investors should think about before committing capital to this stock.
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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
