Want to help shape the future of investing tools? Participate in a short research study and receive a subscription valued at $60.
In 2016 Terry Handley was appointed CEO of Casey’s General Stores, Inc. (NASDAQ:CASY). 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. 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 Terry Handley’s Compensation Compare With Similar Sized Companies?
Our data indicates that Casey’s General Stores, Inc. is worth US$4.7b, and total annual CEO compensation is US$2.3m. (This figure is for the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$925k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO compensation was US$4.8m.
Most shareholders would consider it a positive that Terry Handley takes less compensation than the CEOs of most similar size companies, leaving more 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 a visual representation of the CEO compensation at Casey’s General Stores, below.
Is Casey’s General Stores, Inc. Growing?
Casey’s General Stores, Inc. has increased its earnings per share (EPS) by an average of 19% a year, over the last three years (using a line of best fit). It achieved revenue growth of 19% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Casey’s General Stores, Inc. Been A Good Investment?
With a total shareholder return of 16% over three years, Casey’s General Stores, Inc. shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Casey’s General Stores, Inc. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn’t mean that Terry Handley is paid too much.
Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it’s even better if insiders are also buying shares with their own cold, hard, cash. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Casey’s General Stores (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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 email@example.com.