U.S. Markets closed

Should You Worry About CAI International, Inc.'s (NYSE:CAI) CEO Pay?

Simply Wall St

In 2011 Victor Garcia was appointed CEO of CAI International, Inc. (NYSE:CAI). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for CAI International

How Does Victor Garcia's Compensation Compare With Similar Sized Companies?

Our data indicates that CAI International, Inc. is worth US$375m, and total annual CEO compensation is US$2.3m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$713k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.8m.

That means Victor Garcia receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at CAI International has changed over time.

NYSE:CAI CEO Compensation, August 8th 2019

Is CAI International, Inc. Growing?

On average over the last three years, CAI International, Inc. has grown earnings per share (EPS) by 74% each year (using a line of best fit). In the last year, its revenue is up 24%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has CAI International, Inc. Been A Good Investment?

Boasting a total shareholder return of 177% over three years, CAI International, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CAI International (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.