We Take A Look At Whether Texas Pacific Land Corporation's (NYSE:TPL) CEO May Be Underpaid

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. This would be kept in mind at the upcoming AGM on 16 November 2022 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out the opportunities and risks within the US Oil and Gas industry.

Comparing Texas Pacific Land Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Texas Pacific Land Corporation has a market capitalization of US$20b, and reported total annual CEO compensation of US$5.0m for the year to December 2021. Notably, that's an increase of 65% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$850k.

On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$12m. Accordingly, Texas Pacific Land pays its CEO under the industry median. What's more, Tyler Glover holds US$3.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	US$850k	US$850k	17%
Other	US$4.1m	US$2.2m	83%
Total Compensation	US$5.0m	US$3.0m	100%

On an industry level, roughly 14% of total compensation represents salary and 86% is other remuneration. Texas Pacific Land pays out 17% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's 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 11% per year. In the last year, its revenue is up 75%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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?

Boasting a total shareholder return of 320% over three years, Texas Pacific Land Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in 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.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Texas Pacific Land (free visualization of insider trades).

Important note: Texas Pacific Land is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.