The CEO of CTI Logistics Limited (ASX:CLX) is Bruce Saxild, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for CTI Logistics.
Comparing CTI Logistics Limited's CEO Compensation With the industry
Our data indicates that CTI Logistics Limited has a market capitalization of AU$44m, and total annual CEO compensation was reported as AU$580k for the year to June 2020. That's just a smallish increase of 5.0% on last year. Notably, the salary which is AU$540.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under AU$285m, the reported median total CEO compensation was AU$527k. This suggests that CTI Logistics remunerates its CEO largely in line with the industry average. What's more, Bruce Saxild holds AU$1.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, roughly 91% of total compensation represents salary and 9.3% is other remuneration. Our data reveals that CTI Logistics allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at CTI Logistics Limited's Growth Numbers
Over the last three years, CTI Logistics Limited has shrunk its earnings per share by 97% per year. It achieved revenue growth of 1.6% over the last year.
Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has CTI Logistics Limited Been A Good Investment?
With a three year total loss of 45% for the shareholders, CTI Logistics Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As previously discussed, Bruce is compensated close to the median for companies of its size, and which belong to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for CTI Logistics you should be aware of, and 2 of them are a bit unpleasant.
Important note: CTI Logistics 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.
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. 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.
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