U.S. Markets closed

How Should Investors React To Alimentation Couche-Tard Inc.'s (TSE:ATD.B) CEO Pay?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Brian Hannasch became the CEO of Alimentation Couche-Tard Inc. (TSE:ATD.B) in 2014. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Alimentation Couche-Tard

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$46b, and is paying total annual CEO compensation of US$8.8m. (This figure is for the year to April 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.7m. We looked at a group of companies with market capitalizations over CA$10b and the median CEO total compensation was CA$9.1m. 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. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Alimentation Couche-Tard has changed from year to year.

TSX:ATD.B CEO Compensation, July 18th 2019

Is Alimentation Couche-Tard Inc. Growing?

On average over the last three years, Alimentation Couche-Tard Inc. has grown earnings per share (EPS) by 20% each year (using a line of best fit). In the last year, its revenue is up 15%.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Alimentation Couche-Tard Inc. Been A Good Investment?

Boasting a total shareholder return of 39% over three years, Alimentation Couche-Tard Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Brian Hannasch is paid around the same as most CEOs of large companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Alimentation Couche-Tard shares with their own money (free access).

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 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.