Yahoo Finance Teleflex Incorporated's (NYSE:TFX) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
Teleflex to hold its Annual General Meeting on 3rd of May
Total pay for CEO Liam Kelly includes US$1.06m salary
The total compensation is 35% less than the average for the industry
Over the past three years, Teleflex's EPS grew by 1.7% and over the past three years, the total loss to shareholders 50%
Performance at Teleflex Incorporated (NYSE:TFX) has been rather uninspiring recently and shareholders may be wondering how CEO Liam Kelly plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 3rd of May. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
View our latest analysis for Teleflex
Comparing Teleflex Incorporated's CEO Compensation With The Industry
At the time of writing, our data shows that Teleflex Incorporated has a market capitalization of US$9.7b, and reported total annual CEO compensation of US$9.0m for the year to December 2023. We note that's an increase of 10% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.1m.
In comparison with other companies in the American Medical Equipment industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$14m. This suggests that Liam Kelly is paid below the industry median. Moreover, Liam Kelly also holds US$5.8m worth of Teleflex stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.1m | US$1.0m | 12% |
Other | US$8.0m | US$7.2m | 88% |
Total Compensation | US$9.0m | US$8.2m | 100% |
On an industry level, around 26% of total compensation represents salary and 74% is other remuneration. Teleflex sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Teleflex Incorporated's Growth
Teleflex Incorporated has seen its earnings per share (EPS) increase by 1.7% a year over the past three years. Its revenue is up 6.6% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Teleflex Incorporated Been A Good Investment?
Few Teleflex Incorporated shareholders would feel satisfied with the return of -50% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The fact that shareholders have earned a negative share price return is certainly disconcerting. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Teleflex (free visualization of insider trades).
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
