Yahoo Finance Is The Toronto-Dominion Bank’s (TSE:TD) CEO Paid At A Competitive Rate?
Bharat Masrani has been the CEO of The Toronto-Dominion Bank (TSE:TD) since 2014. This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. 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.
See our latest analysis for Toronto-Dominion Bank
How Does Bharat Masrani’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that The Toronto-Dominion Bank has a market cap of CA$133.3b, and is paying total annual CEO compensation of CA$12m. We note that’s an increase of 20% above last year. We looked at a group of companies with market capitalizations over CA$10.5b and the median CEO compensation was CA$9m.
As you can see, Bharat Masrani is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean The Toronto-Dominion Bank is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Toronto-Dominion Bank, below.
Is The Toronto-Dominion Bank Growing?
Over the last three years The Toronto-Dominion Bank has grown its earnings per share (EPS) by an average of 12% per year. It achieved revenue growth of 6.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has The Toronto-Dominion Bank Been A Good Investment?
Most shareholders would probably be pleased with The Toronto-Dominion Bank for providing a total return of 51% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared total CEO remuneration at The Toronto-Dominion Bank with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at The Toronto-Dominion Bank.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
