Melissa Reiff became the CEO of The Container Store Group, Inc. (NYSE:TCS) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Melissa Reiff's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that The Container Store Group, Inc. has a market cap of US$207m, and reported total annual CEO compensation of US$2.5m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$813k. 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$100m to US$400m, we found the median CEO total compensation was US$1.1m.
Thus we can conclude that Melissa Reiff receives more in total compensation than the median of a group of companies in the same market, and of similar size to The Container Store Group, Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Container Store Group has changed from year to year.
Is The Container Store Group, Inc. Growing?
On average over the last three years, The Container Store Group, Inc. has grown earnings per share (EPS) by 29% each year (using a line of best fit). Its revenue is up 5.1% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has The Container Store Group, Inc. Been A Good Investment?
Since shareholders would have lost about 12% over three years, some The Container Store Group, Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by The Container Store Group, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Container Store Group shares with their own money (free access).
If you want to buy a stock that is better than Container Store Group, this free list of high return, low debt companies is a great place to look.
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