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Is Triple-S Management Corporation's (NYSE:GTS) CEO Paid At A Competitive Rate?

Simply Wall St

Roberto García-Rodríguez has been the CEO of Triple-S Management Corporation (NYSE:GTS) since 2016. First, this article will compare CEO compensation with compensation at similar sized 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. This method should give us information to assess how appropriately the company pays the CEO.

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Check out our latest analysis for Triple-S Management

How Does Roberto García-Rodríguez's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Triple-S Management Corporation has a market cap of US$576m, and is paying total annual CEO compensation of US$3.2m. (This number is for the twelve months until December 2018). That's a modest increase of 2.4% on the prior year year. We think total compensation is more important but we note that the CEO salary is lower, at US$811k. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.

It would therefore appear that Triple-S Management Corporation pays Roberto García-Rodríguez more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Triple-S Management, below.

NYSE:GTS CEO Compensation, May 16th 2019

Is Triple-S Management Corporation Growing?

Triple-S Management Corporation has reduced its earnings per share by an average of 64% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 3.3%.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.

Has Triple-S Management Corporation Been A Good Investment?

Triple-S Management Corporation has generated a total shareholder return of 15% over three years, so most shareholders would 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.

In Summary...

We compared the total CEO remuneration paid by Triple-S Management Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

And shareholder returns are decent but not great. So you may want to delve deeper, because we don't think the CEO pay is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Triple-S Management 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.