What Did Tractor Supply Company’s (NASDAQ:TSCO) CEO Take Home Last Year?
In 2012 Gregory Sandfort was appointed CEO of Tractor Supply Company (NASDAQ:TSCO). This analysis aims first to contrast CEO compensation with other large companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Gregory Sandfort’s Compensation Compare With Similar Sized Companies?
Our data indicates that Tractor Supply Company is worth US$10b, and total annual CEO compensation is US$6.0m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.0m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Tractor Supply has changed over time.
Is Tractor Supply Company Growing?
Tractor Supply Company has increased its earnings per share (EPS) by an average of 8.4% a year, over the last three years (using a line of best fit). Its revenue is up 7.1% over last year.
I’d prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Tractor Supply Company Been A Good Investment?
With a total shareholder return of 10% over three years, Tractor Supply Company shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Tractor Supply Company is currently paying its CEO below what is normal for large companies.
It’s well worth noting that while Gregory Sandfort is paid less than most company leaders (at large companies, share price performance has been somewhat uninspiring. But on this analysis I see no issue with the CEO compensation. Shareholders may want to check for free if Tractor Supply insiders are buying or selling shares.
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
