Tim Hockey has been the CEO of TD Ameritrade Holding Corporation (NASDAQ:AMTD) since 2016. First, this article will compare CEO compensation with compensation at other large 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 Tim Hockey's Compensation Compare With Similar Sized Companies?
Our data indicates that TD Ameritrade Holding Corporation is worth US$26b, and total annual CEO compensation is US$8.6m. (This is based on the year to September 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.0m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Tim Hockey receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at TD Ameritrade Holding has changed from year to year.
Is TD Ameritrade Holding Corporation Growing?
TD Ameritrade Holding Corporation has increased its earnings per share (EPS) by an average of 33% a year, over the last three years (using a line of best fit). It achieved revenue growth of 16% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has TD Ameritrade Holding Corporation Been A Good Investment?
I think that the total shareholder return of 54%, over three years, would leave most TD Ameritrade Holding Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Tim Hockey is paid around the same as most CEOs of large companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at TD Ameritrade Holding.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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