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Here's What We Think About Team's (NYSE:TISI) CEO Pay

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Simply Wall St
·3 min read
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This article will reflect on the compensation paid to Amerino Gatti who has served as CEO of Team, Inc. (NYSE:TISI) since 2018. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Team

Comparing Team, Inc.'s CEO Compensation With the industry

According to our data, Team, Inc. has a market capitalization of US$329m, and paid its CEO total annual compensation worth US$3.7m over the year to December 2019. Notably, that's a decrease of 49% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$850k.

For comparison, other companies in the same industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$3.9m. This suggests that Team remunerates its CEO largely in line with the industry average. What's more, Amerino Gatti holds US$1.1m worth of shares in the company in their own name.

Component

2019

2018

Proportion (2019)

Salary

US$850k

US$778k

23%

Other

US$2.9m

US$6.5m

77%

Total Compensation

US$3.7m

US$7.3m

100%

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. Team is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
ceo-compensation

Team, Inc.'s Growth

Over the last three years, Team, Inc. has shrunk its earnings per share by 33% per year. It saw its revenue drop 21% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Team, Inc. Been A Good Investment?

Since shareholders would have lost about 26% over three years, some Team, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Team, Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, EPS growth and total shareholder return have been negative for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Team that investors should be aware of in a dynamic business environment.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.