John Wiehoff has been the CEO of CH Robinson Worldwide Inc (NASDAQ:CHRW) since 2002. First, this article will compare CEO compensation with compensation at other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does John Wiehoff’s Compensation Compare With Similar Sized Companies?
Our data indicates that CH Robinson Worldwide Inc is worth US$12b, and total annual CEO compensation is US$6.0m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$1.2m. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at C.H. Robinson Worldwide has changed over time.
Is CH Robinson Worldwide Inc Growing?
On average over the last three years, CH Robinson Worldwide Inc has grown earnings per share (EPS) by 5.5% each year. It achieved revenue growth of 15% over the last year.
I think the revenue growth is good. And, while modest, the earnings per share growth is noticeable. So while performance isn’t amazing, we think it really does seem quite respectable.
You might want to check this free visual report on analyst forecasts for future earnings.
Has CH Robinson Worldwide Inc Been A Good Investment?
Boasting a total shareholder return of 39% over three years, CH Robinson Worldwide Inc has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
It looks like CH Robinson Worldwide Inc pays its CEO less than the average at large companies.
It’s well worth noting that while John Wiehoff is paid below what is normal at large companies, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CH Robinson Worldwide (free visualization of insider trades).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.