Yahoo Finance Should You Worry About TELUS Corporation's (TSE:T) CEO Salary Level?
Darren Entwistle became the CEO of TELUS Corporation (TSE:T) in 2000. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for TELUS
How Does Darren Entwistle's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that TELUS Corporation has a market cap of CA$33b, and reported total annual CEO compensation of CA$13m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$1.4m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations over CA$11b and the median CEO total compensation was CA$9.1m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
Thus we can conclude that Darren Entwistle receives more in total compensation than the median of a group of large companies in the same market as TELUS Corporation. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at TELUS has changed over time.
Is TELUS Corporation Growing?
On average over the last three years, TELUS Corporation has grown earnings per share (EPS) by 12% each year (using a line of best fit). In the last year, its revenue is up 3.5%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has TELUS Corporation Been A Good Investment?
I think that the total shareholder return of 37%, over three years, would leave most TELUS Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount TELUS Corporation pays its CEO, and compared it to the amount paid by other large companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at TELUS.
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.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
