What Can We Learn About Radiant Logistics' (NYSEMKT:RLGT) CEO Compensation?
This article will reflect on the compensation paid to Bohn Crain who has served as CEO of Radiant Logistics, Inc. (NYSEMKT:RLGT) since 2005. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Radiant Logistics.
View our latest analysis for Radiant Logistics
How Does Total Compensation For Bohn Crain Compare With Other Companies In The Industry?
Our data indicates that Radiant Logistics, Inc. has a market capitalization of US$316m, and total annual CEO compensation was reported as US$1.9m for the year to June 2020. That's a notable increase of 16% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$286k.
On comparing similar companies from the same industry with market caps ranging from US$200m to US$800m, we found that the median CEO total compensation was US$652k. Hence, we can conclude that Bohn Crain is remunerated higher than the industry median. Furthermore, Bohn Crain directly owns US$7.3m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$286k | US$325k | 15% |
Other | US$1.6m | US$1.3m | 85% |
Total Compensation | US$1.9m | US$1.6m | 100% |
On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. It's interesting to note that Radiant Logistics allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Radiant Logistics, Inc.'s Growth Numbers
Radiant Logistics, Inc. has seen its earnings per share (EPS) increase by 79% a year over the past three years. Its revenue is down 4.7% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Radiant Logistics, Inc. Been A Good Investment?
Radiant Logistics, Inc. has served shareholders reasonably well, with a total return of 26% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
As we noted earlier, Radiant Logistics pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed us with its EPS growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Radiant Logistics that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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