Yahoo Finance Why We Think The CEO Of Temple & Webster Group Ltd (ASX:TPW) May Soon See A Pay Rise
The solid performance at Temple & Webster Group Ltd (ASX:TPW) has been impressive and shareholders will probably be pleased to know that CEO Mark Coulter has delivered. At the upcoming AGM on 30 November 2022, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
Check out our latest analysis for Temple & Webster Group
How Does Total Compensation For Mark Coulter Compare With Other Companies In The Industry?
At the time of writing, our data shows that Temple & Webster Group Ltd has a market capitalization of AU$612m, and reported total annual CEO compensation of AU$828k for the year to June 2022. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$371k.
On examining similar-sized companies in the industry with market capitalizations between AU$302m and AU$1.2b, we discovered that the median CEO total compensation of that group was AU$1.9m. This suggests that Mark Coulter is paid below the industry median. Furthermore, Mark Coulter directly owns AU$9.6m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | AU$371k | AU$373k | 45% |
Other | AU$457k | AU$472k | 55% |
Total Compensation | AU$828k | AU$845k | 100% |
Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. Although there is a difference in how total compensation is set, Temple & Webster Group more or less reflects the market in terms of setting the salary. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Temple & Webster Group Ltd's Growth
Over the past three years, Temple & Webster Group Ltd has seen its earnings per share (EPS) grow by 43% per year. In the last year, its revenue is up 31%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Temple & Webster Group Ltd Been A Good Investment?
Boasting a total shareholder return of 130% over three years, Temple & Webster Group Ltd has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
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 Temple & Webster Group that investors should think about before committing capital to this stock.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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