Joe Galli became the CEO of Techtronic Industries Company Limited (HKG:669) in 2008. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Techtronic Industries

How Does Joe Galli’s Compensation Compare With Similar Sized Companies?

According to our data, Techtronic Industries Company Limited has a market capitalization of HK$81b, and pays its CEO total annual compensation worth US$20m. (This number is for the twelve months until 2016). We think total compensation is more important but we note that the CEO salary is lower, at US$1.6m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$668k. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.

Thus we can conclude that Joe Galli receives more in total compensation than the median of a group of large companies in the same market as Techtronic Industries Company Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Techtronic Industries has changed from year to year.

Is Techtronic Industries Company Limited Growing?

Over the last three years Techtronic Industries Company Limited has grown its earnings per share (EPS) by an average of 15% per year. It achieved revenue growth of 16% 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.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Techtronic Industries Company Limited Been A Good Investment?

Boasting a total shareholder return of 55% over three years, Techtronic Industries Company Limited has done well by shareholders. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

We compared total CEO remuneration at Techtronic Industries Company Limited with the amount paid at other large companies. We found that it pays well over the median amount paid in the benchmark group.