Yahoo Finance We Discuss Why Tilly's, Inc.'s (NYSE:TLYS) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year
Key Insights
Tilly's will host its Annual General Meeting on 13th of June
Total pay for CEO Hezy Shaked includes US$453.2k salary
The overall pay is 76% below the industry average
Over the past three years, Tilly's' EPS fell by 100% and over the past three years, the total loss to shareholders 60%
The underwhelming performance at Tilly's, Inc. (NYSE:TLYS) recently has probably not pleased shareholders. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 13th of June. From our analysis below, we think CEO compensation looks appropriate for now.
View our latest analysis for Tilly's
How Does Total Compensation For Hezy Shaked Compare With Other Companies In The Industry?
According to our data, Tilly's, Inc. has a market capitalization of US$174m, and paid its CEO total annual compensation worth US$657k over the year to February 2024. That's a slight decrease of 6.4% on the prior year. In particular, the salary of US$453.2k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar companies from the American Specialty Retail industry with market caps ranging from US$100m to US$400m, we found that the median CEO total compensation was US$2.7m. That is to say, Hezy Shaked is paid under the industry median. Furthermore, Hezy Shaked directly owns US$35m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2024 | 2023 | Proportion (2024) |
Salary | US$453k | US$420k | 69% |
Other | US$204k | US$282k | 31% |
Total Compensation | US$657k | US$702k | 100% |
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Tilly's is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Tilly's, Inc.'s Growth Numbers
Over the last three years, Tilly's, Inc. has shrunk its earnings per share by 100% per year. Its revenue is down 5.3% over the previous year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Tilly's, Inc. Been A Good Investment?
The return of -60% over three years would not have pleased Tilly's, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
Whatever your view on compensation, you might want to check if insiders are buying or selling Tilly's shares (free trial).
Important note: Tilly's is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
