Key Insights
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CTI Logistics will host its Annual General Meeting on 23rd of November
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CEO Bruce Saxild’s total compensation includes salary of AU$591.2k
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The overall pay is 188% above the industry average
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CTI Logistics’ total shareholder return over the past three years was 162% while its EPS grew by 77% over the past three years
Under the guidance of CEO Bruce Saxild, CTI Logistics Limited (ASX:CLX) has performed reasonably well recently. As shareholders go into the upcoming AGM on 23rd of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis 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$116m, and total annual CEO compensation was reported as AU$640k for the year to June 2023. That’s mostly flat as compared to the prior year’s compensation. Notably, the salary which is AU$591.2k, represents most of the total compensation being paid.
For comparison, other companies in the Australia Logistics industry with market capitalizations below AU$307m, reported a median total CEO compensation of AU$222k. This suggests that Bruce Saxild is paid more than the median for the industry. What’s more, Bruce Saxild holds AU$3.9m 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 |
AU$591k |
AU$594k |
92% |
|
Other |
AU$49k |
AU$47k |
8% |
|
Total Compensation |
AU$640k |
AU$641k |
100% |
On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. According to our research, CTI Logistics has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at CTI Logistics Limited’s Growth Numbers
CTI Logistics Limited has seen its earnings per share (EPS) increase by 77% a year over the past three years. In the last year, its revenue is up 6.6%.
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. While we don’t have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CTI Logistics Limited Been A Good Investment?
Boasting a total shareholder return of 162% over three years, CTI Logistics Limited has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude…
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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO compensation can have a massive impact on performance, but it’s just one element. We did our research and spotted 2 warning signs for CTI Logistics that investors should look into moving forward.
Switching gears from CTI Logistics, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.