Key Insights

• Tractor Supply's Annual General Meeting to take place on 9th of May
• Salary of US$1.30m is part of CEO Hal Lawton's total remuneration
• The overall pay is comparable to the industry average
• Tractor Supply's EPS grew by 13% over the past three years while total shareholder return over the past three years was 44%

The performance at Tractor Supply Company (NASDAQ:TSCO) has been quite strong recently and CEO Hal Lawton has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 9th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

How Does Total Compensation For Hal Lawton Compare With Other Companies In The Industry?

According to our data, Tractor Supply Company has a market capitalization of US$29b, and paid its CEO total annual compensation worth US$11m over the year to December 2023. That's a notable increase of 8.5% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.

On comparing similar companies in the American Specialty Retail industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$13m. From this we gather that Hal Lawton is paid around the median for CEOs in the industry. Furthermore, Hal Lawton directly owns US$26m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 17% of total compensation represents salary and 83% is other remuneration. It's interesting to note that Tractor Supply allocates a smaller portion of compensation to salary in comparison 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.

Tractor Supply Company's Growth

Over the past three years, Tractor Supply Company has seen its earnings per share (EPS) grow by 13% per year. Its revenue is up 1.2% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Tractor Supply Company Been A Good Investment?

Boasting a total shareholder return of 44% over three years, Tractor Supply Company has done well by shareholders. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. 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 did our research and spotted 2 warning signs for Tractor Supply that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.