In 1997 Marc Stefanski was appointed CEO of TFS Financial Corporation (NASDAQ:TFSL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Marc Stefanski's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that TFS Financial Corporation has a market cap of US$4.8b, and is paying total annual CEO compensation of US$4.4m. (This number is for the twelve months until September 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.5m. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.9m.
A first glance this seems like a real positive for shareholders, since Marc Stefanski is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at TFS Financial has changed from year to year.
Is TFS Financial Corporation Growing?
Over the last three years TFS Financial Corporation has grown its earnings per share (EPS) by an average of 1.0% per year (using a line of best fit). In the last year, its revenue is down -6.3%.
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. You might want to check this free visual report on analyst forecasts for future earnings.
Has TFS Financial Corporation Been A Good Investment?
TFS Financial Corporation has served shareholders reasonably well, with a total return of 10% over three years. 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.
It appears that TFS Financial Corporation remunerates its CEO below most similar sized companies.
It's well worth noting that while Marc Stefanski is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. However I do not find the CEO compensation to be concerning. Shareholders may want to check for free if TFS Financial insiders are buying or selling shares.
If you want to buy a stock that is better than TFS Financial, this free list of high return, low debt companies is a great place to look.
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