Sheryl Palmer has been the CEO of Taylor Morrison Home Corporation (NYSE:TMHC) since 2012. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Sheryl Palmer’s Compensation Compare With Similar Sized Companies?
Our data indicates that Taylor Morrison Home Corporation is worth US$1.8b, and total annual CEO compensation is US$6m. That’s a fairly small increase of 3.3% on year before. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO compensation of that group was US$4m.
As you can see, Sheryl Palmer is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Taylor Morrison Home Corporation 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 Taylor Morrison Home, below.
Is Taylor Morrison Home Corporation Growing?
Over the last three years Taylor Morrison Home Corporation has grown its earnings per share (EPS) by an average of 4.0% per year. Its revenue is up 5.7% over last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Taylor Morrison Home Corporation Been A Good Investment?
Since shareholders would have lost about 18% over three years, some Taylor Morrison Home Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Taylor Morrison Home Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Whatever your view on compensation, you might want to check if insiders are buying or selling Taylor Morrison Home Corporation shares (free trial).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.