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Tyler Glover became the CEO of Texas Pacific Land Trust (NYSE:TPL) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tyler Glover's Compensation Compare With Similar Sized Companies?
According to our data, Texas Pacific Land Trust has a market capitalization of US$6.2b, and paid its CEO total annual compensation worth US$2.3m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$480k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.5m.
A first glance this seems like a real positive for shareholders, since Tyler Glover 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.
You can see, below, how CEO compensation at Texas Pacific Land Trust has changed over time.
Is Texas Pacific Land Trust Growing?
On average over the last three years, Texas Pacific Land Trust has grown earnings per share (EPS) by 69% each year (using a line of best fit). In the last year, its revenue is up 91%.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Texas Pacific Land Trust Been A Good Investment?
I think that the total shareholder return of 148%, over three years, would leave most Texas Pacific Land Trust shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
It appears that Texas Pacific Land Trust remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Tyler Glover deserves a raise! It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Texas Pacific Land Trust 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.
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