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Shareholders Will Most Likely Find Lowe's Companies, Inc.'s (NYSE:LOW) CEO Compensation Acceptable

Simply Wall St · 05/23 10:52

Key Insights

  • Lowe's Companies to hold its Annual General Meeting on 30th of May
  • CEO Marvin Ellison's total compensation includes salary of US$1.49m
  • The total compensation is similar to the average for the industry
  • Over the past three years, Lowe's Companies' EPS grew by 0.1% and over the past three years, the total shareholder return was 22%
Our free stock report includes 2 warning signs investors should be aware of before investing in Lowe's Companies. Read for free now.

CEO Marvin Ellison has done a decent job of delivering relatively good performance at Lowe's Companies, Inc. (NYSE:LOW) recently. As shareholders go into the upcoming AGM on 30th of May, 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.

Check out our latest analysis for Lowe's Companies

Comparing Lowe's Companies, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Lowe's Companies, Inc. has a market capitalization of US$127b, and reported total annual CEO compensation of US$20m for the year to January 2025. We note that's an increase of 11% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.5m.

In comparison with other companies in the American Specialty Retail industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$16m. From this we gather that Marvin Ellison is paid around the median for CEOs in the industry. Furthermore, Marvin Ellison directly owns US$65m worth of shares in the company, implying that they are deeply invested in the company's success.

Component 2025 2024 Proportion (2025)
Salary US$1.5m US$1.5m 7%
Other US$19m US$17m 93%
Total Compensation US$20m US$18m 100%

Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. Lowe's Companies sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
NYSE:LOW CEO Compensation May 23rd 2025

A Look at Lowe's Companies, Inc.'s Growth Numbers

Lowe's Companies, Inc. saw earnings per share stay pretty flat over the last three years. Its revenue is down 3.2% over the previous year.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Lowe's Companies, Inc. Been A Good Investment?

Lowe's Companies, Inc. has served shareholders reasonably well, with a total return of 22% over three years. 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 an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Lowe's Companies we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.