Shareholders Will Probably Not Have Any Issues With Tapestry, Inc.'s (NYSE:TPR) CEO Compensation

Key Insights

• Tapestry will host its Annual General Meeting on 14th of November
• CEO Joanne Crevoiserat's total compensation includes salary of US$1.39m
• Total compensation is similar to the industry average
• Tapestry's total shareholder return over the past three years was 29% while its EPS grew by 5.3% over the past three years

CEO Joanne Crevoiserat has done a decent job of delivering relatively good performance at Tapestry, Inc. (NYSE:TPR) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 14th of November. We present our case of why we think CEO compensation looks fair.

View our latest analysis for Tapestry

How Does Total Compensation For Joanne Crevoiserat Compare With Other Companies In The Industry?

At the time of writing, our data shows that Tapestry, Inc. has a market capitalization of US$12b, and reported total annual CEO compensation of US$15m for the year to June 2024. That's a fairly small increase of 6.5% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.4m.

In comparison with other companies in the American Luxury industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$16m. This suggests that Tapestry remunerates its CEO largely in line with the industry average. Moreover, Joanne Crevoiserat also holds US$16m worth of Tapestry stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$1.4m	US$1.4m	9%
Other	US$14m	US$13m	91%
Total Compensation	US$15m	US$14m	100%

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. In Tapestry's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Tapestry, Inc.'s Growth

Tapestry, Inc. has seen its earnings per share (EPS) increase by 5.3% a year over the past three years. Revenue was pretty flat on last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Tapestry, Inc. Been A Good Investment?

Tapestry, Inc. has served shareholders reasonably well, with a total return of 29% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Tapestry that investors should be aware of in a dynamic business environment.

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.