Shareholders Would Not Be Objecting To Interface, Inc.'s (NASDAQ:TILE) CEO Compensation And Here's Why

Key Insights

• Interface will host its Annual General Meeting on 15th of May
• CEO Laurel Hurd's total compensation includes salary of US$895.0k
• Total compensation is similar to the industry average
• Interface's total shareholder return over the past three years was 52% while its EPS grew by 13% over the past three years

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The performance at Interface, Inc. (NASDAQ:TILE) has been quite strong recently and CEO Laurel Hurd has played a role in it. Coming up to the next AGM on 15th of May, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Interface

How Does Total Compensation For Laurel Hurd Compare With Other Companies In The Industry?

Our data indicates that Interface, Inc. has a market capitalization of US$1.1b, and total annual CEO compensation was reported as US$5.6m for the year to December 2024. We note that's an increase of 24% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$895k.

On examining similar-sized companies in the American Commercial Services industry with market capitalizations between US$400m and US$1.6b, we discovered that the median CEO total compensation of that group was US$4.5m. From this we gather that Laurel Hurd is paid around the median for CEOs in the industry. What's more, Laurel Hurd holds US$4.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 22% of total compensation represents salary and 78% is other remuneration. Interface pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Interface, Inc.'s Growth

Interface, Inc.'s earnings per share (EPS) grew 13% per year over the last three years. In the last year, its revenue is up 5.4%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Interface, Inc. Been A Good Investment?

Boasting a total shareholder return of 52% over three years, Interface, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 1 warning sign for Interface that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.