Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Todd Vasos has been the CEO of Dollar General Corporation (NYSE:DG) since 2015. First, this article will compare CEO compensation with compensation at other large companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Todd Vasos's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Dollar General Corporation has a market cap of US$35b, and is paying total annual CEO compensation of US$11m. (This is based on the year to February 2019). Notably, that's an increase of 20% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be 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.
So Todd Vasos receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Dollar General has changed over time.
Is Dollar General Corporation Growing?
Dollar General Corporation has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). Its revenue is up 9.0% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Dollar General Corporation Been A Good Investment?
Most shareholders would probably be pleased with Dollar General Corporation for providing a total return of 55% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Todd Vasos is paid around the same as most CEOs of large companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Dollar General (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.