Yahoo Finance Does KAR Auction Services, Inc.’s (NYSE:KAR) CEO Salary Reflect Performance?
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James Hallett has been the CEO of KAR Auction Services, Inc. (NYSE:KAR) since 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for KAR Auction Services
How Does James Hallett’s Compensation Compare With Similar Sized Companies?
According to our data, KAR Auction Services, Inc. has a market capitalization of US$7.3b, and pays its CEO total annual compensation worth US$5.8m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$900k. 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.
So James Hallett is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at KAR Auction Services, below.
Is KAR Auction Services, Inc. Growing?
On average over the last three years, KAR Auction Services, Inc. has grown earnings per share (EPS) by 28% each year (using a line of best fit). It achieved revenue growth of 10% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has KAR Auction Services, Inc. Been A Good Investment?
Most shareholders would probably be pleased with KAR Auction Services, Inc. for providing a total return of 71% 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…
James Hallett is paid around the same as most CEOs of similar size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if KAR Auction Services insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.
