Yahoo Finance How Should Investors React To Horizon North Logistics Inc.'s (TSE:HNL) CEO Pay?
In 2014 Rod Graham was appointed CEO of Horizon North Logistics Inc. (TSE:HNL). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Horizon North Logistics
How Does Rod Graham's Compensation Compare With Similar Sized Companies?
According to our data, Horizon North Logistics Inc. has a market capitalization of CA$182m, and pays its CEO total annual compensation worth CA$1.3m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$600k. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO total compensation was CA$138k.
It would therefore appear that Horizon North Logistics Inc. pays Rod Graham 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Horizon North Logistics, below.
Is Horizon North Logistics Inc. Growing?
On average over the last three years, Horizon North Logistics Inc. has grown earnings per share (EPS) by 34% each year (using a line of best fit). Its revenue is up 33% over last year.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Horizon North Logistics Inc. Been A Good Investment?
With a three year total loss of 29%, Horizon North Logistics Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Horizon North Logistics Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of 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. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Horizon North 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.
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.
