It's Unlikely That The CEO Of TriMas Corporation (NASDAQ:TRS) Will See A Huge Pay Rise This Year

Key Insights

• TriMas to hold its Annual General Meeting on 14th of May
• Salary of US$741.3k is part of CEO Tom Amato's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, TriMas' EPS grew by 42% and over the past three years, the total loss to shareholders 18%

In the past three years, the share price of TriMas Corporation (NASDAQ:TRS) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 14th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for TriMas

Comparing TriMas Corporation's CEO Compensation With The Industry

Our data indicates that TriMas Corporation has a market capitalization of US$1.1b, and total annual CEO compensation was reported as US$4.0m for the year to December 2023. Notably, that's a decrease of 9.0% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$741k.

In comparison with other companies in the American Packaging industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$3.8m. This suggests that TriMas remunerates its CEO largely in line with the industry average. Moreover, Tom Amato also holds US$7.0m worth of TriMas stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$741k	US$715k	18%
Other	US$3.3m	US$3.7m	82%
Total Compensation	US$4.0m	US$4.4m	100%

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. According to our research, TriMas has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at TriMas Corporation's Growth Numbers

TriMas Corporation's earnings per share (EPS) grew 42% per year over the last three years. It achieved revenue growth of 3.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 TriMas Corporation Been A Good Investment?

With a three year total loss of 18% for the shareholders, TriMas Corporation would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is potentially serious) in TriMas we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.