James Reed became the CEO of USA Truck, Inc. (NASDAQ:USAK) in 2017. 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 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 James Reed's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that USA Truck, Inc. has a market cap of US$75m, and is paying total annual CEO compensation of US$1.6m. (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$456k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$487k.
It would therefore appear that USA Truck, Inc. pays James Reed more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at USA Truck has changed from year to year.
Is USA Truck, Inc. Growing?
USA Truck, 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 8.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has USA Truck, Inc. Been A Good Investment?
Since shareholders would have lost about 22% over three years, some USA Truck, Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at USA Truck, Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. 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 USA Truck (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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