It's Unlikely That Shareholders Will Increase TD SYNNEX Corporation's (NYSE:SNX) Compensation By Much This Year
Key Insights
TD SYNNEX to hold its Annual General Meeting on 20th of March
CEO Rich Hume's total compensation includes salary of US$990.3k
Total compensation is similar to the industry average
Over the past three years, TD SYNNEX's EPS grew by 2.6% and over the past three years, the total shareholder return was 3.6%
Performance at TD SYNNEX Corporation (NYSE:SNX) has been reasonably good and CEO Rich Hume has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 20th of March. Here is our take on why we think the CEO compensation looks appropriate.
View our latest analysis for TD SYNNEX
Comparing TD SYNNEX Corporation's CEO Compensation With The Industry
At the time of writing, our data shows that TD SYNNEX Corporation has a market capitalization of US$9.2b, and reported total annual CEO compensation of US$9.3m for the year to November 2023. That's a notable increase of 23% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$990k.
On comparing similar companies from the American Electronic industry with market caps ranging from US$4.0b to US$12b, we found that the median CEO total compensation was US$7.3m. So it looks like TD SYNNEX compensates Rich Hume in line with the median for the industry. What's more, Rich Hume holds US$17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$990k | US$960k | 11% |
Other | US$8.3m | US$6.5m | 89% |
Total Compensation | US$9.3m | US$7.5m | 100% |
Talking in terms of the industry, salary represented approximately 30% of total compensation out of all the companies we analyzed, while other remuneration made up 70% of the pie. It's interesting to note that TD SYNNEX allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at TD SYNNEX Corporation's Growth Numbers
TD SYNNEX Corporation has seen its earnings per share (EPS) increase by 2.6% a year over the past three years. It saw its revenue drop 7.7% over the last year.
We generally like to see a little revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has TD SYNNEX Corporation Been A Good Investment?
TD SYNNEX Corporation has not done too badly by shareholders, with a total return of 3.6%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for TD SYNNEX that investors should look into moving forward.
Important note: TD SYNNEX is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
