Yahoo Finance Shareholders Will Probably Hold Off On Increasing T-Mobile US, Inc.'s (NASDAQ:TMUS) CEO Compensation For The Time Being
Key Insights
T-Mobile US will host its Annual General Meeting on 12th of June
CEO Mike Sievert's total compensation includes salary of US$1.75m
The total compensation is 920% higher than the average for the industry
Over the past three years, T-Mobile US' EPS grew by 50% and over the past three years, the total shareholder return was 24%
Under the guidance of CEO Mike Sievert, T-Mobile US, Inc. (NASDAQ:TMUS) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for T-Mobile US
How Does Total Compensation For Mike Sievert Compare With Other Companies In The Industry?
Our data indicates that T-Mobile US, Inc. has a market capitalization of US$209b, and total annual CEO compensation was reported as US$37m for the year to December 2023. That's a notable increase of 29% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.7m.
On comparing similar companies in the American Wireless Telecom industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$3.7m. This suggests that Mike Sievert is paid more than the median for the industry. Furthermore, Mike Sievert directly owns US$55m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.7m | US$1.7m | 5% |
Other | US$36m | US$27m | 95% |
Total Compensation | US$37m | US$29m | 100% |
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. T-Mobile US has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at T-Mobile US, Inc.'s Growth Numbers
T-Mobile US, Inc. has seen its earnings per share (EPS) increase by 50% a year over the past three years. In the last year, its revenue changed by just 0.7%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 T-Mobile US, Inc. Been A Good Investment?
T-Mobile US, Inc. has served shareholders reasonably well, with a total return of 24% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
T-Mobile US prefers rewarding its CEO through non-salary benefits. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
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. We did our research and spotted 2 warning signs for T-Mobile US that investors should look into moving forward.
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.
