Ronald Tutor became the CEO of Tutor Perini Corporation (NYSE:TPC) in 2000. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Ronald Tutor’s Compensation Compare With Similar Sized Companies?
According to our data, Tutor Perini Corporation has a market capitalization of US$688m, and pays its CEO total annual compensation worth US$23m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$1.8m. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.7m.
Thus we can conclude that Ronald Tutor receives more in total compensation than the median of a group of companies in the same market, and of similar size to Tutor Perini Corporation. 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.
You can see, below, how CEO compensation at Tutor Perini has changed over time.
Is Tutor Perini Corporation Growing?
Over the last three years Tutor Perini Corporation has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). Its revenue is down -6.1% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end.
Has Tutor Perini Corporation Been A Good Investment?
Given the total loss of 47% over three years, many shareholders in Tutor Perini Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Tutor Perini Corporation pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Tutor Perini insiders are buying or selling shares.
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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