In 2016 Terry Handley was appointed CEO of Casey’s General Stores, Inc. (NASDAQ:CASY). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. 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?
According to our data, Casey’s General Stores, Inc. has a market capitalization of US$5.0b, and pays its CEO total annual compensation worth US$2.3m. (This figure is for the year to April 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$925k. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO compensation was US$6.3m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Casey’s General Stores has changed from year to year.
Is Casey’s General Stores, Inc. Growing?
Over the last three years Casey’s General Stores, Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). It achieved revenue growth of 19% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Casey’s General Stores, Inc. Been A Good Investment?
I think that the total shareholder return of 37%, over three years, would leave most Casey’s General Stores, Inc. shareholders smiling. 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.
It appears that Casey’s General Stores, Inc. remunerates its CEO below most similar sized companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Terry Handley deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Casey’s General Stores.
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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