Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Tod Carpenter became the CEO of Donaldson Company, Inc. (NYSE:DCI) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Tod Carpenter’s Compensation Compare With Similar Sized Companies?
Our data indicates that Donaldson Company, Inc. is worth US$6.1b, and total annual CEO compensation is US$5.9m. (This is based on the year to July 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$942k. 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 Tod Carpenter 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.
You can see a visual representation of the CEO compensation at Donaldson Company, below.
Is Donaldson Company, Inc. Growing?
On average over the last three years, Donaldson Company, Inc. has grown earnings per share (EPS) by 11% each year (using a line of best fit). In the last year, its revenue is up 6.5%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Donaldson Company, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Donaldson Company, Inc. for providing a total return of 40% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Tod Carpenter is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Donaldson Company.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.