Yahoo Finance Shareholders May Not Be So Generous With THOR Industries, Inc.'s (NYSE:THO) CEO Compensation And Here's Why
Key Insights
THOR Industries will host its Annual General Meeting on 15th of December
Salary of US$750.0k is part of CEO Bob Martin's total remuneration
The overall pay is 1,017% above the industry average
THOR Industries' total shareholder return over the past three years was 20% while its EPS grew by 1.9% over the past three years
CEO Bob Martin has done a decent job of delivering relatively good performance at THOR Industries, Inc. (NYSE:THO) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of December. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for THOR Industries
Comparing THOR Industries, Inc.'s CEO Compensation With The Industry
Our data indicates that THOR Industries, Inc. has a market capitalization of US$5.7b, and total annual CEO compensation was reported as US$11m for the year to July 2023. We note that's a decrease of 33% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$750k.
For comparison, other companies in the American Auto industry with market capitalizations ranging between US$4.0b and US$12b had a median total CEO compensation of US$946k. This suggests that Bob Martin is paid more than the median for the industry. What's more, Bob Martin holds US$29m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$750k | US$750k | 7% |
Other | US$9.8m | US$15m | 93% |
Total Compensation | US$11m | US$16m | 100% |
Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. It's interesting to note that THOR Industries allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at THOR Industries, Inc.'s Growth Numbers
THOR Industries, Inc. has seen its earnings per share (EPS) increase by 1.9% a year over the past three years. Its revenue is down 32% over the previous year.
We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has THOR Industries, Inc. Been A Good Investment?
THOR Industries, Inc. has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for THOR Industries that you should be aware of before investing.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
