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Our Take On ArcBest Corporation's (NASDAQ:ARCB) CEO Salary

Judy McReynolds became the CEO of ArcBest Corporation (NASDAQ:ARCB) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for ArcBest

How Does Judy McReynolds's Compensation Compare With Similar Sized Companies?

According to our data, ArcBest Corporation has a market capitalization of US$704m, and paid its CEO total annual compensation worth US$4.1m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$709k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.6m.

As you can see, Judy McReynolds is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ArcBest Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at ArcBest, below.

NasdaqGS:ARCB CEO Compensation, January 3rd 2020
NasdaqGS:ARCB CEO Compensation, January 3rd 2020

Is ArcBest Corporation Growing?

Over the last three years ArcBest Corporation has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has ArcBest Corporation Been A Good Investment?

ArcBest Corporation has not done too badly by shareholders, with a total return of 1.7%, over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared total CEO remuneration at ArcBest Corporation with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. Whatever your view on compensation, you might want to check if insiders are buying or selling ArcBest shares (free trial).

If you want to buy a stock that is better than ArcBest, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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