There Could Be A Chance Fastenal Company's (NASDAQ:FAST) CEO Will Have Their Compensation Increased

Key Insights

• Fastenal will host its Annual General Meeting on 24th of April
• CEO Dan Florness' total compensation includes salary of US$700.0k
• The overall pay is 78% below the industry average
• Fastenal's total shareholder return over the past three years was 53% while its EPS grew by 5.5% over the past three years

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Shareholders will be pleased by the robust performance of Fastenal Company (NASDAQ:FAST) recently and this will be kept in mind in the upcoming AGM on 24th of April. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Fastenal

Comparing Fastenal Company's CEO Compensation With The Industry

According to our data, Fastenal Company has a market capitalization of US$47b, and paid its CEO total annual compensation worth US$1.7m over the year to December 2024. Notably, that's a decrease of 45% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$700k.

In comparison with other companies in the American Trade Distributors industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$7.7m. In other words, Fastenal pays its CEO lower than the industry median. What's more, Dan Florness holds US$24m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. It's interesting to note that Fastenal pays out a greater portion of remuneration through salary, compared to the industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Fastenal Company's Growth Numbers

Fastenal Company's earnings per share (EPS) grew 5.5% per year over the last three years. In the last year, its revenue is up 3.1%.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Fastenal Company Been A Good Investment?

Boasting a total shareholder return of 53% over three years, Fastenal Company 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.

To Conclude...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Fastenal that investors should be aware of in a dynamic business environment.

Important note: Fastenal is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.