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How Much Did Generac Holdings Inc.'s (NYSE:GNRC) CEO Pocket Last Year?

Aaron Jagdfeld became the CEO of Generac Holdings Inc. (NYSE:GNRC) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Generac Holdings

How Does Aaron Jagdfeld's Compensation Compare With Similar Sized Companies?

Our data indicates that Generac Holdings Inc. is worth US$5.2b, and total annual CEO compensation was reported as US$5.9m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$863k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.8m.

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So Aaron Jagdfeld is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Generac Holdings has changed from year to year.

NYSE:GNRC CEO Compensation, October 15th 2019
NYSE:GNRC CEO Compensation, October 15th 2019

Is Generac Holdings Inc. Growing?

Generac Holdings Inc. has increased its earnings per share (EPS) by an average of 45% a year, over the last three years (using a line of best fit). It achieved revenue growth of 15% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Generac Holdings Inc. Been A Good Investment?

Most shareholders would probably be pleased with Generac Holdings Inc. for providing a total return of 128% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Aaron Jagdfeld is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Generac Holdings 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. Thank you for reading.