Jim Cline has been the CEO of Trex Company, Inc. (NYSE:TREX) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Trex Company
How Does Jim Cline's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Trex Company, Inc. has a market cap of US$4.9b, and reported total annual CEO compensation of US$2.6m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$545k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.9m.
Most shareholders would consider it a positive that Jim Cline takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. It could be important to check this free visual depiction of what analysts expect for the future.
The graphic below shows how CEO compensation at Trex Company has changed from year to year.
Is Trex Company, Inc. Growing?
Trex Company, Inc. has increased its earnings per share (EPS) by an average of 26% a year, over the last three years (using a line of best fit). Its revenue is up 8.1% over last year.
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.
Has Trex Company, Inc. Been A Good Investment?
Boasting a total shareholder return of 216% over three years, Trex Company, Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Trex Company, Inc. is currently paying its CEO below what is normal for companies of its size.
Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Jim Cline deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Shareholders may want to check for free if Trex Company insiders are buying or selling shares.
If you want to buy a stock that is better than Trex Company, this free list of high return, low debt companies is a great place to look.
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.