Russ Girling has been the CEO of TC Energy Corporation (TSE:TRP) since 2010. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Russ Girling's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that TC Energy Corporation has a market cap of CA$60b, and is paying total annual CEO compensation of CA$13m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$1.4m. We looked at a group of companies with market capitalizations over CA$11b and the median CEO total compensation was CA$9.1m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
As you can see, Russ Girling is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean TC Energy Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at TC Energy, below.
Is TC Energy Corporation Growing?
TC Energy Corporation has increased its earnings per share (EPS) by an average of 84% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.8%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has TC Energy Corporation Been A Good Investment?
With a total shareholder return of 21% over three years, TC Energy Corporation shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We examined the amount TC Energy Corporation pays its CEO, and compared it to the amount paid by other large companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Whatever your view on compensation, you might want to check if insiders are buying or selling TC Energy shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.