What Did TriNet Group's (NYSE:TNET) CEO Take Home Last Year?
Burton Goldfield has been the CEO of TriNet Group, Inc. (NYSE:TNET) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for TriNet Group
Comparing TriNet Group, Inc.'s CEO Compensation With the industry
According to our data, TriNet Group, Inc. has a market capitalization of US$5.1b, and paid its CEO total annual compensation worth US$5.6m over the year to December 2019. That's a notable decrease of 9.5% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$881k.
On examining similar-sized companies in the industry with market capitalizations between US$4.0b and US$12b, we discovered that the median CEO total compensation of that group was US$7.4m. This suggests that TriNet Group remunerates its CEO largely in line with the industry average. What's more, Burton Goldfield holds US$47m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$881k | US$809k | 16% |
Other | US$4.7m | US$5.4m | 84% |
Total Compensation | US$5.6m | US$6.2m | 100% |
On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. TriNet Group pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
TriNet Group, Inc.'s Growth
TriNet Group, Inc. has seen its earnings per share (EPS) increase by 31% a year over the past three years. It achieved revenue growth of 6.2% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 TriNet Group, Inc. Been A Good Investment?
Most shareholders would probably be pleased with TriNet Group, Inc. for providing a total return of 74% over three years. 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.
To Conclude...
As we noted earlier, TriNet Group pays its CEO in line with similar-sized companies belonging to the same industry. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for TriNet Group (1 can't be ignored!) that you should be aware of before investing here.
Important note: TriNet Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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