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QuestionsCategory: Investor PsychologyManagement payment
ashz asked 3 years ago

I am looking at TTD (the trade desk) listed on the US stock exchange. However, I am concerned that their pay for the management is quite high. the CEO for 2017 gets 6.1m (4.1m cash)  and the rest of the 4 executives gets each about 3.2m (1.2m). the revenue for TTD in 2017 is 308m and profit is 50.8m. So this means that the executives are getting 10% of profits. is that a lot? sounds a lot of a new company that just listed. wondering if you have any insight. 

2 Answers
Victor Chng answered 3 years ago

Hi Ashz,
 
When it comes to analysing the management compensation, it have to go along with the company performance. What we don;t want to see is that when the company is not performing and the management are still being paid highly.

ashz replied 3 years ago

Got it so it’s not so much a percentage but whether the management are wiling to weather the ups and downs.

Victor Chng answered 3 years ago

Hi Ashz,
 
Yes you are right.