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Does TEGNA Inc.'s (NYSE:TGNA) CEO Pay Reflect Performance?

Simply Wall St

Dave Lougee has been the CEO of TEGNA Inc. (NYSE:TGNA) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for TEGNA

How Does Dave Lougee's Compensation Compare With Similar Sized Companies?

Our data indicates that TEGNA Inc. is worth US$3.9b, and total annual CEO compensation was reported as US$4.9m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$950k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. 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$4.9m.

So Dave Lougee receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at TEGNA, below.

NYSE:TGNA CEO Compensation, January 16th 2020

Is TEGNA Inc. Growing?

TEGNA Inc. has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 9.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has TEGNA Inc. Been A Good Investment?

I think that the total shareholder return of 40%, over three years, would leave most TEGNA 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...

Remuneration for Dave Lougee is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying TEGNA shares with their own money (free access).

Important note: TEGNA 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.

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.

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