In 2009 Jeff Green was appointed CEO of The Trade Desk, Inc. (NASDAQ:TTD). First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Jeff Green's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that The Trade Desk, Inc. has a market cap of US$13b, and reported total annual CEO compensation of US$11m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$800k. 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 over US$8.0b and the median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
So Jeff Green is paid around the average of 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, below, how CEO compensation at Trade Desk has changed over time.
Is The Trade Desk, Inc. Growing?
On average over the last three years, The Trade Desk, Inc. has grown earnings per share (EPS) by 54% each year (using a line of best fit). Its revenue is up 39% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has The Trade Desk, Inc. Been A Good Investment?
I think that the total shareholder return of 545%, over three years, would leave most The Trade Desk, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Jeff Green is close enough to the median pay for a CEO of a large company .
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Trade Desk.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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