Is TriNet Group, Inc.'s (NYSE:TNET) CEO Salary Justified?
In 2008 Burton Goldfield was appointed CEO of TriNet Group, Inc. (NYSE:TNET). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for TriNet Group
How Does Burton Goldfield's Compensation Compare With Similar Sized Companies?
According to our data, TriNet Group, Inc. has a market capitalization of US$2.8b, and paid its CEO total annual compensation worth US$6.2m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$809k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.6m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 20% of total compensation represents salary and 80% is other remuneration. It's interesting to note that TriNet Group allocates a smaller portion of compensation to salary in comparison to the broader industry.
That means Burton Goldfield receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at TriNet Group has changed from year to year.
Is TriNet Group, Inc. Growing?
TriNet Group, Inc. has seen earnings per share (EPS) move positively by an average of 26% a year, over the last three years (using a line of best fit). It achieved revenue growth of 10% over the last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has TriNet Group, Inc. Been A Good Investment?
Boasting a total shareholder return of 49% over three years, TriNet Group, Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Burton Goldfield is paid around what is normal for the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Shifting gears from CEO pay for a second, we've picked out 2 warning signs for TriNet Group that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
