Dan Crowley became the CEO of Triumph Group, Inc. (NYSE:TGI) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Dan Crowley's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Triumph Group, Inc. has a market cap of US$1.2b, and reported total annual CEO compensation of US$4.6m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$925k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.5m.
As you can see, Dan Crowley is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Triumph Group, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Triumph Group, below.
Is Triumph Group, Inc. Growing?
Over the last three years Triumph Group, Inc. has grown its earnings per share (EPS) by an average of 35% per year (using a line of best fit). Its revenue is down 5.4% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Triumph Group, Inc. Been A Good Investment?
With a three year total loss of 7.2%, Triumph Group, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We examined the amount Triumph Group, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Triumph Group (free visualization of insider trades).
Important note: Triumph Group 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 email@example.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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