It's Unlikely That Shareholders Will Increase Tennant Company's (NYSE:TNC) Compensation By Much This Year

Key Insights

• Tennant will host its Annual General Meeting on 29th of April
• Salary of US$947.5k is part of CEO Dave Huml's total remuneration
• The total compensation is similar to the average for the industry
• Tennant's EPS grew by 8.3% over the past three years while total shareholder return over the past three years was 2.7%

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Under the guidance of CEO Dave Huml, Tennant Company (NYSE:TNC) has performed reasonably well recently. As shareholders go into the upcoming AGM on 29th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Tennant

How Does Total Compensation For Dave Huml Compare With Other Companies In The Industry?

Our data indicates that Tennant Company has a market capitalization of US$1.3b, and total annual CEO compensation was reported as US$5.1m for the year to December 2024. That's a slight decrease of 7.0% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$948k.

For comparison, other companies in the American Machinery industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.4m. This suggests that Tennant remunerates its CEO largely in line with the industry average. Furthermore, Dave Huml directly owns US$4.2m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. It's interesting to note that Tennant pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Tennant Company's Growth

Tennant Company's earnings per share (EPS) grew 8.3% per year over the last three years. It achieved revenue growth of 3.5% over the last year.

We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Tennant Company Been A Good Investment?

Tennant Company has not done too badly by shareholders, with a total return of 2.7%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

So you may want to check if insiders are buying Tennant shares with their own money (free access).

Switching gears from Tennant, 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.