In 2012 Greg Sandfort was appointed CEO of Tractor Supply Company (NASDAQ:TSCO). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Greg Sandfort's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Tractor Supply Company has a market cap of US$12b, and is paying total annual CEO compensation of US$9.3m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.1m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
So Greg Sandfort is paid around the average of 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.
You can see, below, how CEO compensation at Tractor Supply has changed over time.
Is Tractor Supply Company Growing?
On average over the last three years, Tractor Supply Company has grown earnings per share (EPS) by 13% each year (using a line of best fit). In the last year, its revenue is up 8.2%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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?
Tractor Supply Company has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Remuneration for Greg Sandfort is close enough to the median pay for a CEO of a large company .
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tractor Supply.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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