Is The Container Store Group, Inc. (NYSE:TCS) Excessively Paying Its CEO?

Melissa Reiff became the CEO of The Container Store Group, Inc. (NYSE:TCS) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Container Store Group

How Does Melissa Reiff’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that The Container Store Group, Inc. has a market cap of US$426m, and is paying total annual CEO compensation of US$1.6m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$800k. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.6m.

That means Melissa Reiff receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Container Store Group, below.

NYSE:TCS CEO Compensation, April 19th 2019
NYSE:TCS CEO Compensation, April 19th 2019

Is The Container Store Group, Inc. Growing?

The Container Store Group, Inc. has increased its earnings per share (EPS) by an average of 38% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.5%.

This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.

Has The Container Store Group, Inc. Been A Good Investment?

Boasting a total shareholder return of 37% over three years, The Container Store Group, Inc. has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.

In Summary…

Remuneration for Melissa Reiff is close enough to the median pay for a CEO of a similar sized company .

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Container Store Group.

Important note: Container Store Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.