U.S. Markets closed

Does The Container Store Group, Inc.’s (NYSE:TCS) CEO Salary Reflect Performance?

Collin Greene

Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!

Melissa Reiff became the CEO of The Container Store Group, Inc. (NYSE:TCS) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Container Store Group

How Does Melissa Reiff’s Compensation Compare With Similar Sized Companies?

Our data indicates that The Container Store Group, Inc. is worth US$321m, and total annual CEO compensation is US$1.6m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$800k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.5m.

So Melissa Reiff receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Container Store Group, below.

NYSE:TCS CEO Compensation, February 24th 2019

Is The Container Store Group, Inc. Growing?

The Container Store Group, Inc. has increased its earnings per share (EPS) by an average of 38% a year, over the last three years (using a line of best fit). It achieved revenue growth of 3.5% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has The Container Store Group, Inc. Been A Good Investment?

With a total shareholder return of 26% over three years, The Container Store Group, 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…

Melissa Reiff is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Container Store Group (free visualization of insider trades).

Important note: Container Store 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.

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.