In 1997 Marc Stefanski was appointed CEO of TFS Financial Corp (NASDAQ:TFSL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Marc Stefanski’s Compensation Compare With Similar Sized Companies?
According to our data, TFS Financial Corp has a market capitalization of US$4.4b, and pays its CEO total annual compensation worth US$4.3m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.4m. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$5.0m.
So Marc Stefanski is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at TFS Financial, below.
Is TFS Financial Corp Growing?
Over the last three years TFS Financial Corp has grown its earnings per share (EPS) by an average of 7.8% per year. In the last year, its revenue changed by just -0.7%.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has TFS Financial Corp Been A Good Investment?
Given the total loss of 6.3% over three years, many shareholders in TFS Financial Corp are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Marc Stefanski is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. Whatever your view on compensation, you might want to check if insiders are buying or selling TFS Financial shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 email@example.com.