Key Insights

• Teleflex's Annual General Meeting to take place on 3rd of May
• Total pay for CEO Liam Kelly includes US$1.06m salary
• The overall pay is 35% below the industry average
• Teleflex's three-year loss to shareholders was 50% while its EPS grew by 1.7% over the past three years

Shareholders may be wondering what CEO Liam Kelly plans to do to improve the less than great performance at Teleflex Incorporated (NYSE:TFX) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 3rd of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

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. That's a notable increase of 10% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.1m.

For comparison, other companies in the American Medical Equipment industry with market capitalizations above US$8.0b, reported a median total CEO compensation of 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.

On an industry level, roughly 26% of total compensation represents salary and 74% is other remuneration. Teleflex pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Teleflex Incorporated's Growth Numbers

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Teleflex Incorporated Been A Good Investment?

With a total shareholder return of -50% over three years, Teleflex Incorporated shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. The disappointing performance may have something to do with the flat earnings growth. 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Teleflex.

Important note: Teleflex 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.