A Look At Teleflex's (NYSE:TFX) CEO Remuneration

This article will reflect on the compensation paid to Liam Kelly who has served as CEO of Teleflex Incorporated (NYSE:TFX) since 2018. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Teleflex

Comparing Teleflex Incorporated's CEO Compensation With the industry

Our data indicates that Teleflex Incorporated has a market capitalization of US$18b, and total annual CEO compensation was reported as US$6.8m for the year to December 2019. That's a notable increase of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$869k.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$9.6m. From this we gather that Liam Kelly is paid around the median for CEOs in the industry. Moreover, Liam Kelly also holds US$4.6m worth of Teleflex stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. In Teleflex's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Teleflex Incorporated's Growth Numbers

Teleflex Incorporated's earnings per share (EPS) grew 23% per year over the last three years. Revenue was pretty flat on last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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?

Boasting a total shareholder return of 63% over three years, Teleflex Incorporated has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As we touched on above, Teleflex Incorporated is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

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. That's why we did some digging and identified 1 warning sign for Teleflex that you should be aware of before investing.

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.

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. 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.

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