Matthew Messinger has been the CEO of Trinity Place Holdings Inc. (NYSEMKT:TPHS) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Matthew Messinger’s Compensation Compare With Similar Sized Companies?
According to our data, Trinity Place Holdings Inc. has a market capitalization of US$50m, and paid its CEO total annual compensation worth US$1.4m over the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$750k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$623k.
Now let’s take a look at the pay mix on an industry and company level to gain a better understanding of where Trinity Place Holdings stands. Talking in terms of the sector, salary represented approximately 28% of total compensation out of all the companies we analysed, while other remuneration made up 72% of the pie. Trinity Place Holdings is paying a higher share of its remuneration through a salary in comparison to the overall industry.
It would therefore appear that Trinity Place Holdings Inc. pays Matthew Messinger more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. The graphic below shows how CEO compensation at Trinity Place Holdings has changed from year to year.
Is Trinity Place Holdings Inc. Growing?
On average over the last three years, Trinity Place Holdings Inc. has grown earnings per share (EPS) by 4.0% each year (using a line of best fit). In the last year, its revenue is up 8.6%.
I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Trinity Place Holdings Inc. Been A Good Investment?
Given the total loss of 79% over three years, many shareholders in Trinity Place Holdings Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Trinity Place Holdings Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. On another note, Trinity Place Holdings has 5 warning signs (and 1 which is a bit concerning) we think you should know about.
If you want to buy a stock that is better than Trinity Place Holdings, this free list of high return, low debt companies is a great place to look.
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