Want to take part in a short research study? Help form the destiny of investing equipment, and you can win a $250 gift card! Tom Greco has been the CEO of Advance Auto Parts, Inc. (NYSE: AAP) since 2016. First, this newsletter will evaluate CEO repayment with reimbursement at different huge agencies. Next, we’ll consider the growth that the commercial enterprise demonstrates. And finally – like a 2d degree of overall performance – we can look at the returns shareholders have acquired over the last few years. This process should give us approximately how appropriately the CEO is paid.
Check out our ultra-modern evaluation for Advance Auto Parts.
How Does Tom Greco’s Compensation Compare With Similar-Sized Companies?
Our records suggest that Advance Auto Parts, Inc. It is worth US$11b, and the total annual CEO repayment is US$8.9m. (This parent is for the 12 months to December 2018). While we usually examine overall reimbursement first, we observe that the salary component is less, at US$1.1m. We looked at a collection of groups with market capitalizations over US$8.0b, and the median CEO total compensation was US$11m. Once you start searching for huge corporations, you want to take a wider variety because there, in reality, aren’t that lots of them.
So Tom Greco is paid around the average of the corporations we checked out. While this data point isn’t especially informative on my own, it profits more meaning when considered with business performance. You can see below, how CEO reimbursement at Advance Auto Parts has changed through the years.
Is Advance Auto Parts, Inc. Growing?
Over the remaining three years, Advance Auto Parts, Inc. Has grown its profits according to the proportion (EPS) with an average of 2.Zero% per year (the usage of a line of pleasant healthy). Its sales are up to three.2% over the last yr.
I’m not especially inspired by utilizing the revenue boom. However, it is good to peer a modest EPS boom. It’s clear the performance has been quite respectable, but it falls quickly off first-rate, based on these records.
Has Advance Auto Parts, Inc. Been A Good Investment?
Given the whole lack of 4.Four% over three years, many shareholders in Advance Auto Parts, Inc. They are likely alternatively disenchanted, to mention the least. It, therefore, is probably frightening for shareholders if the CEO were paid generously.
In Summary…
Tom Greco is paid around the same as the maximum CEOs of large corporations.
We would love to look relatively more potent in keeping with percentage growth. And we think the shareholder returns – over three years – were underwhelming. So many would argue that the CEO is honestly no longer underpaid. Shareholders may also want to test for free if Advance Auto Parts insiders shop for or promote shares.
Important note: Advance Auto Parts won’t be the first-rate stock to buy. You may discover something higher on this list of thrilling agencies with excessive ROE and coffee debt.
We intend carry you long-term centered studies evaluation pushed by waydamental records. Note that our evaluation won’t issue within the latest fee-touchy employer bulletins or qualitative cloth.
If you notice a blunder that warrants correction, please get in touch with the editor at editorial-team@simplywallst.Com. This article by Simply Wall St is standard. It no longer represents a bit of advice to buy or sell any stock and no longer considers your targets or your monetary scenario. Simply Wall St has no role within the shares noted. Thank you for analyzing.
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Buy used auto parts.
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Buy auto elements online.
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