Brian Hannasch has been the CEO of Alimentation Couche-Tard Inc. (TSE:ATD.B) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Brian Hannasch's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Alimentation Couche-Tard Inc. has a market cap of CA$47b, and reported total annual CEO compensation of US$9.4m for the year to April 2019. While we always look at total compensation first, we note that the salary component is less, at US$1.9m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations over CA$10b, and calculated the median CEO total compensation to be CA$9.6m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Brian Hannasch is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Alimentation Couche-Tard has changed over time.
Is Alimentation Couche-Tard Inc. Growing?
On average over the last three years, Alimentation Couche-Tard Inc. has grown earnings per share (EPS) by 21% each year (using a line of best fit). In the last year, its revenue is down 2.4%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Alimentation Couche-Tard Inc. Been A Good Investment?
Boasting a total shareholder return of 41% over three years, Alimentation Couche-Tard Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Brian Hannasch is close enough to the median pay for a CEO of a large company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Alimentation Couche-Tard.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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