Yahoo Finance Does Turning Point Brands, Inc.'s (NYSE:TPB) CEO Pay Compare Well With Peers?
Larry Wexler became the CEO of Turning Point Brands, Inc. (NYSE:TPB) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Turning Point Brands
How Does Larry Wexler's Compensation Compare With Similar Sized Companies?
Our data indicates that Turning Point Brands, Inc. is worth US$553m, and total annual CEO compensation was reported as US$2.2m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$750k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.7m.
As you can see, Larry Wexler is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Turning Point Brands, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Turning Point Brands, below.
Is Turning Point Brands, Inc. Growing?
Over the last three years Turning Point Brands, Inc. has grown its earnings per share (EPS) by an average of 4.1% per year (using a line of best fit). In the last year, its revenue is up 21%.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Shareholders might be interested in this free visualization of analyst forecasts.
Has Turning Point Brands, Inc. Been A Good Investment?
Boasting a total shareholder return of 117% over three years, Turning Point Brands, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared total CEO remuneration at Turning Point Brands, Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Turning Point Brands shares (free trial).
Important note: Turning Point Brands may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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