M. Woods became the CEO of Total System Services, Inc. (NYSE:TSS) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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 process should give us an idea about how appropriately the CEO is paid.
How Does M. Woods’s Compensation Compare With Similar Sized Companies?
According to our data, Total System Services, Inc. has a market capitalization of US$17b, and pays its CEO total annual compensation worth US$11m. (This number is for the twelve months until December 2018). That’s a notable increase of 54% on last year. While we always look at total compensation first, we note that the salary component is less, at US$1.0m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
So M. Woods is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Total System Services has changed from year to year.
Is Total System Services, Inc. Growing?
Total System Services, Inc. has increased its earnings per share (EPS) by an average of 26% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -18%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Total System Services, Inc. Been A Good Investment?
Boasting a total shareholder return of 115% over three years, Total System Services, Inc. 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.
M. Woods is paid around the same as most CEOs of large companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Total System Services.
Important note: Total System Services 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.
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