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Why Hub Group, Inc.'s (NASDAQ:HUBG) CEO Pay Matters To You

Simply Wall St

David Yeager has been the CEO of Hub Group, Inc. (NASDAQ:HUBG) since 1995. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Hub Group

How Does David Yeager's Compensation Compare With Similar Sized Companies?

Our data indicates that Hub Group, Inc. is worth US$1.6b, and total annual CEO compensation was reported as US$5.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$950k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.

So David Yeager receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Hub Group, below.

NasdaqGS:HUBG CEO Compensation, October 7th 2019
NasdaqGS:HUBG CEO Compensation, October 7th 2019

Is Hub Group, Inc. Growing?

On average over the last three years, Hub Group, Inc. has grown earnings per share (EPS) by 23% each year (using a line of best fit). It achieved revenue growth of 9.8% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Hub Group, Inc. Been A Good Investment?

Hub Group, Inc. has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Remuneration for David Yeager is close enough to the median pay for a CEO of a similar sized company .

The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Hub Group shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.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.