Here's What We Think About Graco Inc.'s (NYSE:GGG) CEO Pay
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In 2007 Pat McHale was appointed CEO of Graco Inc. (NYSE:GGG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Graco
How Does Pat McHale's Compensation Compare With Similar Sized Companies?
Our data indicates that Graco Inc. is worth US$8.6b, and total annual CEO compensation is US$6.4m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$816k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m.
So Pat McHale receives a similar amount to the median CEO pay, amongst 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.
The graphic below shows how CEO compensation at Graco has changed from year to year.
Is Graco Inc. Growing?
On average over the last three years, Graco Inc. has grown earnings per share (EPS) by 27% each year (using a line of best fit). In the last year, its revenue is up 7.3%.
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 Graco Inc. Been A Good Investment?
Most shareholders would probably be pleased with Graco Inc. for providing a total return of 105% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Pat McHale is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Graco insiders are buying or selling shares.
If you want to buy a stock that is better than Graco, this free list of high return, low debt companies is a great place to look.
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 editorial-team@simplywallst.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.
