In 2016 Dan Crowley was appointed CEO of Triumph Group, Inc. (NYSE:TGI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
See our latest analysis for Triumph Group
How Does Dan Crowley's Compensation Compare With Similar Sized Companies?
According to our data, Triumph Group, Inc. has a market capitalization of US$1.2b, and pays its CEO total annual compensation worth US$6.3m. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$900k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$400m to US$1.6b. The median total CEO compensation was US$2.3m.
Thus we can conclude that Dan Crowley receives more in total compensation than the median of a group of companies in the same market, and of similar size to Triumph 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.
You can see, below, how CEO compensation at Triumph Group has changed over time.
Is Triumph Group, Inc. Growing?
Over the last three years Triumph Group, Inc. has grown its earnings per share (EPS) by an average of 23% per year (using a line of best fit). In the last year, its revenue is up 5.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Triumph Group, Inc. Been A Good Investment?
Since shareholders would have lost about 33% over three years, some Triumph Group, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Triumph Group, Inc. with the amount paid at companies with a similar market capitalization. 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 the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Triumph Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.