Key Insights
- Texas Roadhouse's Annual General Meeting to take place on 15th of May
- CEO Jerry Morgan's total compensation includes salary of US$1.30m
- Total compensation is 62% below industry average
- Texas Roadhouse's EPS grew by 23% over the past three years while total shareholder return over the past three years was 138%
Shareholders will be pleased by the impressive results for Texas Roadhouse, Inc. (NASDAQ:TXRH) recently and CEO Jerry Morgan has played a key role. At the upcoming AGM on 15th of May, 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. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
See our latest analysis for Texas Roadhouse
How Does Total Compensation For Jerry Morgan Compare With Other Companies In The Industry?
Our data indicates that Texas Roadhouse, Inc. has a market capitalization of US$11b, and total annual CEO compensation was reported as US$6.2m for the year to December 2024. Notably, that's an increase of 16% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.3m.
For comparison, other companies in the American Hospitality industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$16m. In other words, Texas Roadhouse pays its CEO lower than the industry median. Moreover, Jerry Morgan also holds US$16m worth of Texas Roadhouse stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.3m | US$1.2m | 21% |
| Other | US$4.9m | US$4.2m | 79% |
| Total Compensation | US$6.2m | US$5.3m | 100% |
Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. According to our research, Texas Roadhouse has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Texas Roadhouse, Inc.'s Growth
Texas Roadhouse, Inc. has seen its earnings per share (EPS) increase by 23% a year over the past three years. It achieved revenue growth of 16% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Texas Roadhouse, Inc. Been A Good Investment?
We think that the total shareholder return of 138%, over three years, would leave most Texas Roadhouse, 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.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Texas Roadhouse that investors should be aware of in a dynamic business environment.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.