Here's Why Texas Pacific Land Corporation's (NYSE:TPL) CEO May Deserve A Raise
Key Insights
Texas Pacific Land will host its Annual General Meeting on 10th of November
CEO Tyler Glover's total compensation includes salary of US$850.0k
Total compensation is 55% below industry average
Over the past three years, Texas Pacific Land's EPS grew by 26% and over the past three years, the total shareholder return was 281%
The solid performance at Texas Pacific Land Corporation (NYSE:TPL) has been impressive and shareholders will probably be pleased to know that CEO Tyler Glover has delivered. This would be kept in mind at the upcoming AGM on 10th of November which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for Texas Pacific Land
Comparing Texas Pacific Land Corporation's CEO Compensation With The Industry
According to our data, Texas Pacific Land Corporation has a market capitalization of US$14b, and paid its CEO total annual compensation worth US$6.3m over the year to December 2022. That's a notable increase of 26% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$850k.
On comparing similar companies in the American Oil and Gas industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$14m. In other words, Texas Pacific Land pays its CEO lower than the industry median. What's more, Tyler Glover holds US$2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$850k | US$850k | 14% |
Other | US$5.4m | US$4.1m | 86% |
Total Compensation | US$6.3m | US$5.0m | 100% |
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. Texas Pacific Land 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.
A Look at Texas Pacific Land Corporation's Growth Numbers
Texas Pacific Land Corporation has seen its earnings per share (EPS) increase by 26% a year over the past three years. In the last year, its revenue is down 6.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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?
Most shareholders would probably be pleased with Texas Pacific Land Corporation for providing a total return of 281% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Texas Pacific Land (free visualization of insider trades).
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.
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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.
