Generac management check
GNRC · Industrials · Heavy Electrical Equipment · CEO Aaron P Jagdfeld
Filings as of
5 good · 0 to watch · 2 flagged, across the seven questions below.
- Flag
Have owners done well?
Trailed its chosen peers$100 invested at the start of fiscal 2021 grew to $60, against $190 for the peer group the company picked itself.
- Good
Does pay follow performance?
Pay rose and fell with returnsOver 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.90 with shareholder return. 1 means pay moved in step; below 0, the opposite way.
- Flag
What does the CEO cost owners?
5.5% of net income$8.8m of reported pay in fiscal 2025, against $161.4m of net income.
- Good
Do they own the stock?
CEO stake ≈ 13 years of payThe CEO holds 544,528 shares, directly or through trusts (unvested awards not counted): about 13 years of pay. Light activity: no buys, $8.0m sold in six months. 32 of 32 sales ran on pre-arranged 10b5-1 plans.
- Good
Are owners being diluted?
Share count shrinkingDiluted shares changed -2.3% a year over the last three fiscal years. Stock-based pay was 1.2% of revenue in the latest year.
- Good
Is leadership stable?
2 leadership filings in 3 yearsCEO in the pay table: Aaron P Jagdfeld. 2 filings under 8-K item 5.02 (officers or directors leaving or joining, or new pay arrangements) in the last 3 years.
- Good
Are the books clean?
No red flags on fileNo restatements, auditor changes or late filings since 2021.
Against the S&P 500
Each check's score (0–100) and how it compares: the share of ranked S&P 500 companies it matches or beats, and the median in Industrials.
| Check | Score | At or above | Sector median |
|---|---|---|---|
| Owner returns | 0 | 55 | |
| Pay for performance | 95 | 86 | |
| CEO cost | 0 | 48 | |
| Skin in the game | 90 | 55 | |
| Dilution | 78 | 62 | |
| Stable leadership | 100 | 75 | |
| Clean books | 100 | 100 |
Closest peers
Others in Heavy Electrical Equipment, by management score. Generac is 45th of 81 in its sector.
- 39GEVGE Vernova83
- 206TXTTextron68
- 208AMEAmetek68
- 213PNRPentair68
- 217TDGTransDigm Group67
- 224GNRCGenerac66
Pay versus performance
From the proxy statement filed April 29, 2026. "Actually paid" values stock awards at the share price, so it rises and falls with the stock.
| Fiscal year | CEO | CEO pay | Actually paid | Other executives (avg) | $100 became | Peers | Net income |
|---|---|---|---|---|---|---|---|
| 2025 | Aaron P Jagdfeld | $8.8m | $4.5m | $1.9m | $60 | $190 | $161.4m |
| 2024 | — | $9.3m | $12.0m | $2.5m | $68 | $159 | $316.9m |
| 2023 | — | $7.1m | $9.0m | $1.8m | $57 | $135 | $217.1m |
| 2022 | — | $6.8m | −$19.3m | $1.6m | $44 | $114 | $408.9m |
| 2021 | — | $7.5m | $40.7m | $2.2m | $155 | $121 | $556.6m |
The board says pay is tied most to Adjusted EBITDA. Its other key measures: Primary Working Capital (“PWC”) as a Percent of Net Sales, Annual Revenue Growth Rate (“CAGR”), Adjusted EBITDA Margin Percentage, Free Cash Flow (“FCF”).
Insiders and the CEO's stake
Aaron Jagdfeld (Chief Executive Officer) held 544,528 shares directly after their latest Form 4 on Oct 1, 2026, roughly $112.2m at that filing's price.
Light activity: no buys, $8.0m sold in six months. 32 of 32 sales ran on pre-arranged 10b5-1 plans.
- SoldAaron JagdfeldChief Executive Officer · 10b5-1 plan$7.0mOct 1, 2026
- SoldNorman P TaffePresident Generac Home · 10b5-1 plan$640kOct 6, 2026
- SoldKyle Andrew RaabePresident, Home Power Gen. · 10b5-1 plan$392kOct 2, 2026
Leadership and governance on file
- Mar 25, 2026Leadership change8-K 5.02
- Jul 31, 2024Leadership change8-K 5.02
- Oct 12, 2022Leadership change8-K 5.02
- Feb 15, 2022Leadership change8-K 5.02
- Feb 7, 2022Leadership change8-K 5.02
Latest shareholder vote results: Jun 12, 2026, including the say-on-pay vote.
Where the money went
Over 2021–2025: $1.0bn returned to owners in buybacks and dividends, 62% of net income, and $188.1m of pay in stock.
| Fiscal year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.7bn | $4.6bn | $4.0bn | $4.3bn | $4.2bn |
| Net income | $556.6m | $408.9m | $217.1m | $316.9m | $161.4m |
| Stock-based pay | $24.0m | $29.5m | $35.5m | $49.2m | $49.9m |
| Buybacks | $126.0m | $345.8m | $251.5m | $152.7m | $147.9m |
| Dividends | $0 | $309k | $0 | $273k | $293k |
| Diluted shares | 64m | 65m | 62m | 60m | 59m |
Educational only, not investment advice. Figures are as filed with the SEC: pay from the proxy's pay-versus-performance table, capital allocation from 10-K XBRL data, insider trades from Form 4s over the last six months, events from the last 5 years of filings. The peer group is the one the company chose. See the method.