Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2005 Randy Marten was appointed CEO of Marten Transport, Ltd. (NASDAQ:MRTN). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Randy Marten's Compensation Compare With Similar Sized Companies?
Our data indicates that Marten Transport, Ltd. is worth US$977m, and total annual CEO compensation is US$1.7m. (This number is for the twelve months until December 2018). Notably, that's an increase of 37% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$679k. When we examined a selection of companies with market caps ranging from US$400m to US$1.6b, we found the median CEO total compensation was US$2.7m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Marten Transport has changed over time.
Is Marten Transport, Ltd. Growing?
On average over the last three years, Marten Transport, Ltd. has grown earnings per share (EPS) by 35% each year (using a line of best fit). In the last year, its revenue is up 12%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Marten Transport, Ltd. Been A Good Investment?
I think that the total shareholder return of 52%, over three years, would leave most Marten Transport, Ltd. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Marten Transport, Ltd. is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Randy Marten deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Marten Transport shares (free trial).
If you want to buy a stock that is better than Marten Transport, this free list of high return, low debt companies is a great place to look.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.