Key Insights

• TPC Consolidated's Annual General Meeting to take place on 24th of November

• Total pay for CEO Charles Huang includes AU$582.8k salary

• The overall pay is 57% below the industry average

• TPC Consolidated's EPS grew by 71% over the past three years while total shareholder return over the past three years was 679%

Shareholders will be pleased by the impressive results for TPC Consolidated Limited (ASX:TPC) recently and CEO Charles Huang has played a key role. At the upcoming AGM on 24th of November, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for TPC Consolidated

Comparing TPC Consolidated Limited's CEO Compensation With The Industry

According to our data, TPC Consolidated Limited has a market capitalization of AU$94m, and paid its CEO total annual compensation worth AU$701k over the year to June 2023. We note that's an increase of 25% above last year. Notably, the salary which is AU$582.8k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Australia Integrated Utilities industry with market capitalizations below AU$308m, we found that the median total CEO compensation was AU$1.6m. This suggests that Charles Huang is paid below the industry median. Moreover, Charles Huang also holds AU$37m worth of TPC Consolidated stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. According to our research, TPC Consolidated has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

TPC Consolidated Limited's Growth

TPC Consolidated Limited's earnings per share (EPS) grew 71% per year over the last three years. In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has TPC Consolidated Limited Been A Good Investment?

Boasting a total shareholder return of 679% over three years, TPC Consolidated Limited 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.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 3 warning signs for TPC Consolidated that investors should think about before committing capital to this stock.

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.

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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.