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How Should Investors React To Tapestry Inc’s (NYSE:TPR) CEO Pay?

Victor Luis has been the CEO of Tapestry Inc (NYSE:TPR) since 2014. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Tapestry

How Does Victor Luis’s Compensation Compare With Similar Sized Companies?

Our data indicates that Tapestry Inc is worth US$12b, and total annual CEO compensation is US$13m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m.

So Victor Luis is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Tapestry, below.

NYSE:TPR CEO Compensation November 18th 18

Is Tapestry Inc Growing?

On average over the last three years, Tapestry Inc has grown earnings per share (EPS) by 1.3% each year. It achieved revenue growth of 26% over the last year.

It’s hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I wouldn’t say this is necessarily top notch growth, but it is certainly promising.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Tapestry Inc Been A Good Investment?

Boasting a total shareholder return of 47% over three years, Tapestry Inc has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

Remuneration for Victor Luis is close enough to the median pay for a CEO of a large company .

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So considering most shareholders would be happy, we’d say the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tapestry Inc (free visualization of insider trades).

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.