Increases to CEO Compensation Might Be Put On Hold For Now at TE Connectivity Ltd. (NYSE:TEL)

Key Insights

• TE Connectivity to hold its Annual General Meeting on 15th of March
• Total pay for CEO Terrence Curtin includes US$1.26m salary
• The total compensation is 35% higher than the average for the industry
• TE Connectivity's total shareholder return over the past three years was 102% while its EPS grew by 15% over the past three years

CEO Terrence Curtin has done a decent job of delivering relatively good performance at TE Connectivity Ltd. (NYSE:TEL) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of March. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for TE Connectivity

How Does Total Compensation For Terrence Curtin Compare With Other Companies In The Industry?

Our data indicates that TE Connectivity Ltd. has a market capitalization of US$41b, and total annual CEO compensation was reported as US$16m for the year to September 2022. Notably, that's an increase of 8.2% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.

In comparison with other companies in the American Electronic industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. Hence, we can conclude that Terrence Curtin is remunerated higher than the industry median. Moreover, Terrence Curtin also holds US$12m worth of TE Connectivity stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	US$1.3m	US$1.2m	8%
Other	US$15m	US$14m	92%
Total Compensation	US$16m	US$15m	100%

On an industry level, around 36% of total compensation represents salary and 64% is other remuneration. It's interesting to note that TE Connectivity allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at TE Connectivity Ltd.'s Growth Numbers

TE Connectivity Ltd. has seen its earnings per share (EPS) increase by 15% a year over the past three years. In the last year, its revenue is up 7.0%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has TE Connectivity Ltd. Been A Good Investment?

We think that the total shareholder return of 102%, over three years, would leave most TE Connectivity Ltd. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

Shareholders may want to check for free if TE Connectivity insiders are buying or selling shares.

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.