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What We Learned About Tejon Ranch's (NYSE:TRC) CEO Pay

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·3 min read
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Greg Bielli became the CEO of Tejon Ranch Co. (NYSE:TRC) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Tejon Ranch.

Check out our latest analysis for Tejon Ranch

How Does Total Compensation For Greg Bielli Compare With Other Companies In The Industry?

According to our data, Tejon Ranch Co. has a market capitalization of US$388m, and paid its CEO total annual compensation worth US$2.3m over the year to December 2019. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$675k.

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$688k. This suggests that Greg Bielli is paid more than the median for the industry. What's more, Greg Bielli holds US$2.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2019

2018

Proportion (2019)

Salary

US$675k

US$625k

29%

Other

US$1.6m

US$1.6m

71%

Total Compensation

US$2.3m

US$2.3m

100%

Talking in terms of the industry, salary represented approximately 29% of total compensation out of all the companies we analyzed, while other remuneration made up 71% of the pie. Our data reveals that Tejon Ranch allocates salary more or less in line with the wider market. 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

A Look at Tejon Ranch Co.'s Growth Numbers

Over the past three years, Tejon Ranch Co. has seen its earnings per share (EPS) grow by 82% per year. It achieved revenue growth of 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Tejon Ranch Co. Been A Good Investment?

With a three year total loss of 33% for the shareholders, Tejon Ranch Co. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Greg is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

Shareholders may want to check for free if Tejon Ranch insiders are buying or selling shares.

Switching gears from Tejon Ranch, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.