Yahoo Finance Tredegar Corporation's (NYSE:TG) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
Tredegar will host its Annual General Meeting on 9th of May
Total pay for CEO John Steitz includes US$928.5k salary
Total compensation is 91% above industry average
Tredegar's EPS declined by 65% over the past three years while total shareholder loss over the past three years was 54%
The results at Tredegar Corporation (NYSE:TG) have been quite disappointing recently and CEO John Steitz bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 9th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Tredegar
How Does Total Compensation For John Steitz Compare With Other Companies In The Industry?
According to our data, Tredegar Corporation has a market capitalization of US$213m, and paid its CEO total annual compensation worth US$1.9m over the year to December 2023. Notably, that's a decrease of 43% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$929k.
For comparison, other companies in the American Metals and Mining industry with market capitalizations ranging between US$100m and US$400m had a median total CEO compensation of US$994k. Accordingly, our analysis reveals that Tredegar Corporation pays John Steitz north of the industry median. What's more, John Steitz holds US$1.5m worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$929k | US$895k | 49% |
Other | US$974k | US$2.5m | 51% |
Total Compensation | US$1.9m | US$3.4m | 100% |
Speaking on an industry level, nearly 29% of total compensation represents salary, while the remainder of 71% is other remuneration. It's interesting to note that Tredegar pays out a greater portion of remuneration through salary, compared to the industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Tredegar Corporation's Growth
Tredegar Corporation has reduced its earnings per share by 65% a year over the last three years. It saw its revenue drop 25% over the last year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tredegar Corporation Been A Good Investment?
With a total shareholder return of -54% over three years, Tredegar Corporation shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Tredegar that investors should look into moving forward.
Important note: Tredegar is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
