Dave Jackson became the CEO of Knight-Swift Transportation Holdings Inc. (NYSE:KNX) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Dave Jackson's Compensation Compare With Similar Sized Companies?
According to our data, Knight-Swift Transportation Holdings Inc. has a market capitalization of US$6.4b, and paid its CEO total annual compensation worth US$5.2m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$749k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$4.0b to US$12b. The median total CEO compensation was US$6.7m.
So Dave Jackson receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Knight-Swift Transportation Holdings has changed from year to year.
Is Knight-Swift Transportation Holdings Inc. Growing?
On average over the last three years, Knight-Swift Transportation Holdings Inc. has grown earnings per share (EPS) by 26% each year (using a line of best fit). It saw its revenue drop 5.0% over the last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Knight-Swift Transportation Holdings Inc. Been A Good Investment?
Knight-Swift Transportation Holdings Inc. has generated a total shareholder return of 11% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Dave Jackson is paid around what is normal the leaders of comparable size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. So you may want to check if insiders are buying Knight-Swift Transportation Holdings shares with their own money (free access).
Important note: Knight-Swift Transportation Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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