Shareholders Will Probably Hold Off On Increasing THOR Industries, Inc.'s (NYSE:THO) CEO Compensation For The Time Being

Key Insights

• THOR Industries will host its Annual General Meeting on 15th of December
• CEO Bob Martin's total compensation includes salary of US$750.0k
• The overall pay is 1,017% above the industry average
• Over the past three years, THOR Industries' EPS grew by 1.9% and over the past three years, the total shareholder return was 20%

Performance at THOR Industries, Inc. (NYSE:THO) has been reasonably good and CEO Bob Martin has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 15th of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for THOR Industries

Comparing THOR Industries, Inc.'s CEO Compensation With The Industry

Our data indicates that THOR Industries, Inc. has a market capitalization of US$5.7b, and total annual CEO compensation was reported as US$11m for the year to July 2023. Notably, that's a decrease of 33% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$750k.

For comparison, other companies in the American Auto industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$946k. Accordingly, our analysis reveals that THOR Industries, Inc. pays Bob Martin north of the industry median. Furthermore, Bob Martin directly owns US$29m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$750k	US$750k	7%
Other	US$9.8m	US$15m	93%
Total Compensation	US$11m	US$16m	100%

Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. It's interesting to note that THOR Industries allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at THOR Industries, Inc.'s Growth Numbers

THOR Industries, Inc. has seen its earnings per share (EPS) increase by 1.9% a year over the past three years. Its revenue is down 32% over the previous year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has THOR Industries, Inc. Been A Good Investment?

With a total shareholder return of 20% over three years, THOR Industries, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for THOR Industries that investors should think about before committing capital to this stock.

Switching gears from THOR Industries, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.