Key Insights

Snap-on to hold its Annual General Meeting on 25th of April Total pay for CEO Nicholas Pinchuk includes US$1.14m salary The total compensation is similar to the average for the industry Snap-on's total shareholder return over the past three years was 18% while its EPS grew by 16% over the past three years

Performance at Snap-on Incorporated (NYSE:SNA) has been reasonably good and CEO Nicholas Pinchuk has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 25th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for Snap-on

Comparing Snap-on Incorporated's CEO Compensation With The Industry

Our data indicates that Snap-on Incorporated has a market capitalization of US$14b, and total annual CEO compensation was reported as US$11m for the year to December 2023. That's a notable increase of 11% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.1m.

On comparing similar companies in the American Machinery industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$13m. So it looks like Snap-on compensates Nicholas Pinchuk in line with the median for the industry. What's more, Nicholas Pinchuk holds US$195m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component 2023 2022 Proportion (2023) Salary US$1.1m US$1.1m 11% Other US$9.4m US$8.3m 89% Total Compensation US$11m US$9.5m 100%

Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. It's interesting to note that Snap-on allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance. ceo-compensation

A Look at Snap-on Incorporated's Growth Numbers

Snap-on Incorporated has seen its earnings per share (EPS) increase by 16% a year over the past three years. Its revenue is up 3.7% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.



Has Snap-on Incorporated Been A Good Investment?

With a total shareholder return of 18% over three years, Snap-on Incorporated shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Snap-on that investors should think about before committing capital to this stock.

Important note: Snap-on is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.