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華爾街日報The Compensation For Tecnoglass Inc.'s (NYSE:TGLS) CEO Looks Deserved And Here's Why
Key Insights
- Tecnoglass to hold its Annual General Meeting on 19th of December
- Total pay for CEO Jose Daes includes US$3.29m salary
- The overall pay is comparable to the industry average
- Over the past three years, Tecnoglass' EPS grew by 15% and over the past three years, the total shareholder return was 87%
We have been pretty impressed with the performance at Tecnoglass Inc. (NYSE:TGLS) recently and CEO Jose Daes deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 19th of December. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for Tecnoglass
How Does Total Compensation For Jose Daes Compare With Other Companies In The Industry?
Our data indicates that Tecnoglass Inc. has a market capitalization of US$2.5b, and total annual CEO compensation was reported as US$4.4m for the year to December 2024. We note that's an increase of 12% above last year. We note that the salary portion, which stands at US$3.29m constitutes the majority of total compensation received by the CEO.
On comparing similar companies from the American Building industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$6.0m. So it looks like Tecnoglass compensates Jose Daes in line with the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$3.3m | US$2.9m | 74% |
| Other | US$1.2m | US$1.0m | 26% |
| Total Compensation | US$4.4m | US$4.0m | 100% |
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. Tecnoglass pays out 74% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Tecnoglass Inc.'s Growth Numbers
Tecnoglass Inc. has seen its earnings per share (EPS) increase by 15% a year over the past three years. In the last year, its revenue is up 16%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Tecnoglass Inc. Been A Good Investment?
We think that the total shareholder return of 87%, over three years, would leave most Tecnoglass Inc. shareholders smiling. 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.
In Summary...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
So you may want to check if insiders are buying Tecnoglass shares with their own money (free access).
Important note: Tecnoglass 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.