Donaldson Company, Inc. (NYSE:DCI) has turned in a solid performance, and CEO Tod Carpenter has done an excellent job of guiding the company in the right direction to achieve its goals.
When deciding how to vote on company resolutions like executive pay at the next annual general meeting, which will be held on November 18, 2022, shareholders will keep this in mind before casting their ballots.
We say that the chief executive officer is currently making a respectable amount of money.
According to the information that we discovered, DCI might be priced too low.
What is Tod Carpenter’s total pay, and how does it compare to the pay packages offered by other companies that offer compensation packages that are comparable?
As of the time this article was written, Donaldson Company, Inc. had a market capitalization of $7.4 billion, and reports indicate that the company’s CEO will receive a salary of $7.0 million each year through July 2022. In terms of pay, that is very comparable to what you received the previous year.
\Although we believe that the total compensation is more important, the data indicates that the salary of the CEO, which is one million dollars, is more important.
We discovered that the median total pay for CEOs at companies in the same industry whose market caps ranged from $4 billion to $12 billion was $9.3 million.
These companies had market caps ranging from $4 billion to $12 billion. If this is any indication, Tod Carpenter makes approximately the same amount of money that an average CEO in his field makes.
Tod Carpenter is known to hold a significant personal stake in Donaldson Company, as this is common knowledge. This is demonstrated by the fact that they have stock in the company with a value of US$13 million that is held under their own names.
The majority of an employee’s total compensation, approximately 85%, is comprised of different types of payments, with only about 15% coming in the form of salary.
According to the findings of our research, the salaries at Donaldson Company are on par with those of similar businesses.
If the majority of an executive’s compensation comes from sources other than their salary, this suggests that the executive’s pay is contingent on the success of the company.
Take a look at the progression that Donaldson Company, Inc. has made over the years.
The earnings that are distributed to shareholders (also known as EPS) at Donaldson Company, Inc. have increased at a rate of 9.3% annually over the past three years. Over the course of the past year, it has seen a 16% increase in revenue.
This increase in sales could be a sign of things to come that are going well.And the rise in earnings per share is satisfactory but not particularly impressive. As a result of this, we do not consider the performance to be exceptionally good, but we do consider it to be fairly good.
If you want to see what the future holds for the company, you might be interested in this free visualization of analyst predictions. Sometimes the past performance of a company can be a good indicator of what’s to come for the company in the future.
How Has Your Investment in Donaldson Company, Inc. Performed for You? Do You Work Out?
Investors in Donaldson Company, Inc., have seen a total return on their capitalization of 15% over the course of the preceding three years. However, they are not likely to accept a CEO salary that is higher than the typical amount paid to executives of companies of the same size.
Last but not least,
It’s possible that shareholders won’t be too concerned about the pay of the CEO at the upcoming annual general meeting (AGM), given how well the company has been doing recently.
Even though the results were good, we still think that any proposed increases to CEO pay will be looked at on a case-by-case basis and will be directly tied to performance.
Investors should take note of the compensation offered to the CEO, but they should also examine the company as a whole. So, we decided to do some research. While we were looking into Donaldson Company, we found two warning signs that investors should know about before deciding whether or not to put money into this stock.
According to this point of view, the amount of money paid to the CEO is not nearly as important as how efficiently the company is run. Check out this free list of interesting companies that have a low amount of debt and a high return on equity.
The process of assigning a value to something is intricate, but we will do everything in our power to simplify it for you.