How Much is Titan International, Inc.'s (NYSE:TWI) CEO Getting Paid?
In 2017, Paul Reitz was appointed CEO of Titan International, Inc. (NYSE:TWI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for Titan International
How Does Paul Reitz's Compensation Compare With Similar Sized Companies?
According to our data, Titan International, Inc. has a market capitalization of US$82m, and paid its CEO total annual compensation worth US$1.4m over the year to December 2019. That's actually a decrease on the year before. While we always look at total compensation first, we note that the salary component is less, at US$900k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$589k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Titan International. Talking in terms of the sector, salary represented approximately 16% of total compensation out of all the companies we analysed, while other remuneration made up 84% of the pie. Titan International is paying a higher share of its remuneration through a salary in comparison to the overall industry.
As you can see, Paul Reitz is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Titan International, Inc. 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 Titan International, below.
Is Titan International, Inc. Growing?
Titan International, Inc. has seen earnings per share (EPS) move positively by an average of 3.5% a year, over the last three years (using a line of best fit). Its revenue is down 13% over last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Titan International, Inc. Been A Good Investment?
With a three year total loss of 87%, Titan International, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Titan International, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. On another note, we've spotted 3 warning signs for Titan International that investors should look into moving forward.
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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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. Thank you for reading.
