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Should You Worry About Two Harbors Investment Corp’s (NYSE:TWO) CEO Pay?

Tom Siering became the CEO of Two Harbors Investment Corp (NYSE:TWO) in 2009. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Two Harbors Investment

How Does Tom Siering’s Compensation Compare With Similar Sized Companies?

According to our data, Two Harbors Investment Corp has a market capitalization of US$3.7b, and pays its CEO total annual compensation worth US$4m. Notably, that’s an increase of 40% over the year before. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$5m.

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That means Tom Siering receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Two Harbors Investment, below.

NYSE:TWO CEO Compensation November 6th 18
NYSE:TWO CEO Compensation November 6th 18

Is Two Harbors Investment Corp Growing?

Two Harbors Investment Corp has increased its earnings per share (EPS) by an average of 21% a year, over the last three years Its revenue is up 42% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Two Harbors Investment Corp Been A Good Investment?

Most shareholders would probably be pleased with Two Harbors Investment Corp for providing a total return of 53% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Tom Siering is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Two Harbors Investment Corp insiders are buying or selling shares.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

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.