Doug Waggoner has been the CEO of Echo Global Logistics, Inc. (NASDAQ:ECHO) since 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Doug Waggoner's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Echo Global Logistics, Inc. has a market cap of US$555m, and is paying total annual CEO compensation of US$5.6m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$830k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$200m to US$800m. The median total CEO compensation was US$1.9m.
As you can see, Doug Waggoner is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Echo Global Logistics, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Echo Global Logistics, below.
Is Echo Global Logistics, Inc. Growing?
Echo Global Logistics, Inc. has increased its earnings per share (EPS) by an average of 74% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 2.2%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Echo Global Logistics, Inc. Been A Good Investment?
With a three year total loss of 21%, Echo Global Logistics, Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Echo Global Logistics, Inc. 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Echo Global Logistics (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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