Bharat Masrani became the CEO of The Toronto-Dominion Bank (TSE:TD) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bharat Masrani’s Compensation Compare With Similar Sized Companies?
Our data indicates that The Toronto-Dominion Bank is worth CA$133.9b, and total annual CEO compensation is CA$12m. That’s a notable increase of 20% on last year. We took a group of companies with market capitalizations over CA$10.6b, and calculated the median CEO compensation to be CA$9m.
As you can see, Bharat Masrani is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean The Toronto-Dominion Bank is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Toronto-Dominion Bank, below.
Is The Toronto-Dominion Bank Growing?
Over the last three years The Toronto-Dominion Bank has grown its earnings per share (EPS) by an average of 12% per year. In the last year, its revenue is up 6.4%.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has The Toronto-Dominion Bank Been A Good Investment?
Boasting a total shareholder return of 51% over three years, The Toronto-Dominion Bank has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by The Toronto-Dominion Bank, and compared it to remuneration at a group of other large companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling The Toronto-Dominion Bank shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings 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.