Here's What We Learnt About The CEO Pay At Asbury Automotive Group, Inc. (NYSE:ABG)

David Hult has been the CEO of Asbury Automotive Group, Inc. (NYSE:ABG) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Asbury Automotive Group

How Does Total Compensation For David Hult Compare With Other Companies In The Industry?

At the time of writing, our data shows that Asbury Automotive Group, Inc. has a market capitalization of US$1.5b, and reported total annual CEO compensation of US$5.5m for the year to December 2019. That's a notable increase of 9.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.0m.

On comparing similar companies from the same industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$6.9m. So it looks like Asbury Automotive Group compensates David Hult in line with the median for the industry. Furthermore, David Hult directly owns US$4.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. Asbury Automotive Group pays a modest slice of remuneration through salary, as compared to the broader 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 Asbury Automotive Group, Inc.'s Growth Numbers

Over the past three years, Asbury Automotive Group, Inc. has seen its earnings per share (EPS) grow by 2.9% per year. It achieved revenue growth of 3.0% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Asbury Automotive Group, Inc. Been A Good Investment?

We think that the total shareholder return of 38%, over three years, would leave most Asbury Automotive Group, 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.

To Conclude...

As we noted earlier, Asbury Automotive Group pays its CEO in line with similar-sized companies belonging to the same industry. However, the company's earnings growth numbers over the last three years is not that impressive. At the same time, shareholder returns have remained strong over the same period. We would like to see EPS growth from the business, although we wouldn't say the CEO compensation is high.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Asbury Automotive Group (1 is potentially serious!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. 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.
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