Here's Why Texas Pacific Land Corporation's (NYSE:TPL) CEO May Deserve A Raise
The impressive results at Texas Pacific Land Corporation (NYSE:TPL) recently will be great news for shareholders. At the upcoming AGM on 16 November 2022, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
Check out our latest analysis for Texas Pacific Land
Comparing Texas Pacific Land Corporation's CEO Compensation With The Industry
Our data indicates that Texas Pacific Land Corporation has a market capitalization of US$20b, and total annual CEO compensation was reported as US$5.0m for the year to December 2021. We note that's an increase of 65% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$850k.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. Accordingly, Texas Pacific Land pays its CEO under the industry median. What's more, Tyler Glover holds US$3.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2021 | 2020 | Proportion (2021) |
Salary | US$850k | US$850k | 17% |
Other | US$4.1m | US$2.2m | 83% |
Total Compensation | US$5.0m | US$3.0m | 100% |
Speaking on an industry level, nearly 14% of total compensation represents salary, while the remainder of 86% is other remuneration. Texas Pacific Land pays out 17% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Texas Pacific Land Corporation's Growth
Texas Pacific Land Corporation's earnings per share (EPS) grew 11% per year over the last three years. It achieved revenue growth of 75% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Texas Pacific Land Corporation Been A Good Investment?
Boasting a total shareholder return of 320% over three years, Texas Pacific Land Corporation has done well by shareholders. 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...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
Shareholders may want to check for free if Texas Pacific Land insiders are buying or selling shares.
Important note: Texas Pacific Land 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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