Key Insights
- Tractor Supply's Annual General Meeting to take place on 15th of May
- CEO Hal Lawton's total compensation includes salary of US$1.29m
- The total compensation is similar to the average for the industry
- Tractor Supply's EPS grew by 5.0% over the past three years while total shareholder return over the past three years was 38%
Under the guidance of CEO Hal Lawton, Tractor Supply Company (NASDAQ:TSCO) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 15th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Tractor Supply
Comparing Tractor Supply Company's CEO Compensation With The Industry
At the time of writing, our data shows that Tractor Supply Company has a market capitalization of US$27b, and reported total annual CEO compensation of US$12m for the year to December 2024. That's a modest increase of 3.5% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.3m.
For comparison, other companies in the American Specialty Retail industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$14m. This suggests that Tractor Supply remunerates its CEO largely in line with the industry average. Moreover, Hal Lawton also holds US$23m worth of Tractor Supply stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$1.3m | US$1.3m | 11% |
| Other | US$10m | US$10m | 89% |
| Total Compensation | US$12m | US$11m | 100% |
On an industry level, around 16% of total compensation represents salary and 84% is other remuneration. Tractor Supply sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Tractor Supply Company's Growth Numbers
Tractor Supply Company has seen its earnings per share (EPS) increase by 5.0% a year over the past three years. It achieved revenue growth of 2.1% over the last year.
We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Tractor Supply Company Been A Good Investment?
Most shareholders would probably be pleased with Tractor Supply Company for providing a total return of 38% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Tractor Supply that investors should think about before committing capital to this stock.
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. 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.