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The impressive results at Titan Machinery Inc. (NASDAQ:TITN) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 07 June 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

View our latest analysis for Titan Machinery

Comparing Titan Machinery Inc.'s CEO Compensation With the industry

According to our data, Titan Machinery Inc. has a market capitalization of US$678m, and paid its CEO total annual compensation worth US$484k over the year to January 2021. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at US$475.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$1.5m. That is to say, David Meyer is paid under the industry median. Furthermore, David Meyer directly owns US$69m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 24% of total compensation represents salary and 76% is other remuneration. Investors will find it interesting that Titan Machinery pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Titan Machinery Inc.'s Growth

Titan Machinery Inc.'s earnings per share (EPS) grew 41% per year over the last three years. Its revenue is up 10% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Titan Machinery Inc. Been A Good Investment?

We think that the total shareholder return of 76%, over three years, would leave most Titan Machinery Inc. shareholders smiling. 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.