Yahoo Finance How Much is Copart, Inc.'s (NASDAQ:CPRT) CEO Getting Paid?
Jay Adair has been the CEO of Copart, Inc. (NASDAQ:CPRT) since 2010. This analysis aims first to contrast CEO compensation with other large companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Copart
How Does Jay Adair's Compensation Compare With Similar Sized Companies?
According to our data, Copart, Inc. has a market capitalization of US$18b, and paid its CEO total annual compensation worth US$203k over the year to July 2018. While we always look at total compensation first, we note that the salary component is less, at US$1.0. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO total compensation was US$11m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Copart has changed from year to year.
Is Copart, Inc. Growing?
On average over the last three years, Copart, Inc. has grown earnings per share (EPS) by 17% each year (using a line of best fit). In the last year, its revenue is up 13%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Shareholders might be interested in this free visualization of analyst forecasts.
Has Copart, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Copart, Inc. for providing a total return of 198% over three years. 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.
In Summary...
It appears that Copart, Inc. remunerates its CEO below most large companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Jay Adair deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. So you may want to check if insiders are buying Copart shares with their own money (free access).
If you want to buy a stock that is better than Copart, this free list of high return, low debt companies is a great place to look.
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. Thank you for reading.
