Carvana management check

CVNA · Consumer Discretionary · Automotive Retail · CEO Ernest C. Iii Garcia

Filings as of

76
Management score, ranked 100th of 487Strongest: skin in the game. Weakest: dilution. See the best and worst run in Consumer Discretionary →

6 good · 0 to watch · 1 flagged, across the seven questions below.

  • Good

    Have owners done well?

    Beat its chosen peers

    $100 invested at the start of fiscal 2021 grew to $176, against $150 for the peer group the company picked itself.

  • Good

    Does pay follow performance?

    Pay rose and fell with returns

    Over 5 years, the CEO's pay actually paid (equity valued at the share price) had a correlation of 0.66 with shareholder return. 1 means pay moved in step; below 0, the opposite way.

  • Good

    What does the CEO cost owners?

    0.4% of net income

    $8.4m of reported pay in fiscal 2025, against $1.9bn of net income.

  • Good

    Do they own the stock?

    CEO stake ≈ 35 years of pay

    The CEO holds 4,709,732 shares, directly or through trusts (unvested awards not counted): about 35 years of pay. Both: 1 buyer ($1.5m) and 6 sellers ($53.8m) in six months. 102 of 106 sales ran on pre-arranged 10b5-1 plans.

  • Flag

    Are owners being diluted?

    Share count growing

    Diluted shares changed +5.7% a year over the last three fiscal years. Stock-based pay was 0.5% of revenue in the latest year.

  • Good

    Is leadership stable?

    1 leadership filings in 3 years

    CEO in the pay table: Mr. Garcia. 1 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 file

    No restatements, auditor changes or late filings since 2023.

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 Consumer Discretionary.

CheckScoreAt or aboveSector median
Owner returns7268%70
Pay for performance8351%79
CEO cost7980%44
Skin in the game100100%36
Dilution07%74
Stable leadership100100%80
Clean books100100%100

Closest peers

Others in Automotive Retail, by management score. Carvana is 13th of 47 in its sector.

  1. 96HDHome Depot (The)76
  2. 100CVNACarvana76
  3. 102MARMarriott International76
  4. 106RLRalph Lauren Corporation76
  5. 164ORLYO'Reilly Automotive71
  6. 220AZOAutoZone67

Pay versus performance

From the proxy statement filed March 25, 2026. "Actually paid" values stock awards at the share price, so it rises and falls with the stock.

CEO pay by fiscal yearAs reported Actually paid
−$10.1m$54.0m$118.1m20212022202320242025
What $100 becameCompany Peer group
$10020212022202320242025$176
Fiscal yearCEOCEO payActually paidOther executives (avg)$100 becamePeersNet income
2025Mr. Garcia$8.4m$110.1m$7.4m$176$150$1.9bn
2024—$10.6m$118.1m$9.3m$85$149$404.0m
2023—$6.5m$38.1m$5.7m$22$110$150.0m
2022—$5.6m−$10.1m$5.0m$2$78−$2.9bn
2021—$5.1m$5.3m$4.4m$97$119−$287.0m

The board says pay is tied most to Adjusted EBITDA. Its other key measures: •Retail Units Sold.

Insiders and the CEO's stake

Ernest C. Iii Garcia (Chief Executive Officer) held 4,709,732 shares directly after their latest Form 4 on Oct 1, 2026, roughly $296.9m at that filing's price.

Both: 1 buyer ($1.5m) and 6 sellers ($53.8m) in six months. 102 of 106 sales ran on pre-arranged 10b5-1 plans.

  • BoughtMichael E MarooneDirector$1.5mJul 31, 2026
  • SoldMark W. JenkinsChief Financial Officer · 10b5-1 plan$26.4mOct 1, 2026
  • SoldBenjamin E. HustonChief Operating Officer · 10b5-1 plan$17.6mSep 1, 2026
  • SoldIra J. PlattDirector$3.2mAug 14, 2026

Leadership and governance on file

Latest shareholder vote results: May 6, 2026, including the say-on-pay vote.

Where the money went

Over 2021–2025: $0 returned to owners in buybacks and dividends, 0% of net income, and $368.0m of pay in stock.

Fiscal year20212022202320242025
Revenue$12.8bn$13.6bn$10.8bn$13.7bn$20.3bn
Net income−$135.0m−$1.6bn$450.0m$210.0m$1.4bn
Stock-based pay$39.0m$69.0m$73.0m$91.0m$96.0m
Buybacks—————
Dividends—————
Diluted shares83m101m201m132m224m

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.