Terrence Curtin became the CEO of TE Connectivity Ltd. (NYSE:TEL) in 2017. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Terrence Curtin's Compensation Compare With Similar Sized Companies?
According to our data, TE Connectivity Ltd. has a market capitalization of US$32b, and paid its CEO total annual compensation worth US$10m over the year to September 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.1m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
That means Terrence Curtin receives fairly typical remuneration for the CEO of a large company. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at TE Connectivity has changed over time.
Is TE Connectivity Ltd. Growing?
On average over the last three years, TE Connectivity Ltd. has grown earnings per share (EPS) by 24% each year (using a line of best fit). In the last year, its revenue is up 5.0%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has TE Connectivity Ltd. Been A Good Investment?
Most shareholders would probably be pleased with TE Connectivity Ltd. for providing a total return of 61% over three years. 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.
Terrence Curtin is paid around the same as most CEOs of large companies.
The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling TE Connectivity shares (free trial).
If you want to buy a stock that is better than TE Connectivity, this free list of high return, low debt companies is a great place to look.
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