Yahoo Finance Our Take On US$5.1m's (NASDAQ:TXRH) CEO Salary
In 2011 Wayne Taylor was appointed CEO of Texas Roadhouse, Inc. (NASDAQ:TXRH). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Texas Roadhouse
How Does Wayne Taylor's Compensation Compare With Similar Sized Companies?
According to our data, Texas Roadhouse, Inc. has a market capitalization of US$3.6b, and paid its CEO total annual compensation worth US$1.4m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$525k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.1m.
A first glance this seems like a real positive for shareholders, since Wayne Taylor is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Texas Roadhouse, below.
Is Texas Roadhouse, Inc. Growing?
Texas Roadhouse, Inc. has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 10%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Texas Roadhouse, Inc. Been A Good Investment?
I think that the total shareholder return of 42%, over three years, would leave most Texas Roadhouse, Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Texas Roadhouse, Inc. is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Wayne Taylor deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Texas Roadhouse shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
