We Discuss Whether Texas Pacific Land Corporation's (NYSE:TPL) CEO Is Due For A Pay Rise

Key Insights

• Texas Pacific Land to hold its Annual General Meeting on 10th of November
• Salary of US$850.0k is part of CEO Tyler Glover's total remuneration
• The overall pay is 55% below the industry average
• Texas Pacific Land's total shareholder return over the past three years was 281% while its EPS grew by 26% over the past three years

The solid performance at Texas Pacific Land Corporation (NYSE:TPL) has been impressive and shareholders will probably be pleased to know that CEO Tyler Glover has delivered. At the upcoming AGM on 10th of November, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Texas Pacific Land

How Does Total Compensation For Tyler Glover Compare With Other Companies In The Industry?

At the time of writing, our data shows that Texas Pacific Land Corporation has a market capitalization of US$14b, and reported total annual CEO compensation of US$6.3m for the year to December 2022. That's a notable increase of 26% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$850k.

For comparison, other companies in the American Oil and Gas industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$14m. In other words, Texas Pacific Land pays its CEO lower than the industry median. What's more, Tyler Glover holds US$2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	US$850k	US$850k	14%
Other	US$5.4m	US$4.1m	86%
Total Compensation	US$6.3m	US$5.0m	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Texas Pacific Land is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Texas Pacific Land Corporation's Growth Numbers

Over the past three years, Texas Pacific Land Corporation has seen its earnings per share (EPS) grow by 26% per year. In the last year, its revenue is down 6.7%.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Texas Pacific Land Corporation Been A Good Investment?

Most shareholders would probably be pleased with Texas Pacific Land Corporation for providing a total return of 281% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Texas Pacific Land.

Switching gears from Texas Pacific Land, 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.