Alain Bédard became the CEO of TFI International Inc. (TSE:TFII) in 1996. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Alain Bédard's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that TFI International Inc. has a market cap of CA$3.2b, and is paying total annual CEO compensation of CA$8.2m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$1.7m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$2.6b to CA$8.4b. The median total CEO compensation was CA$3.9m.
Thus we can conclude that Alain Bédard receives more in total compensation than the median of a group of companies in the same market, and of similar size to TFI International Inc.. However, this doesn't necessarily mean the pay 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 TFI International has changed from year to year.
Is TFI International Inc. Growing?
Over the last three years TFI International Inc. has grown its earnings per share (EPS) by an average of 44% per year (using a line of best fit). Its revenue is up 6.0% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has TFI International Inc. Been A Good Investment?
Most shareholders would probably be pleased with TFI International Inc. for providing a total return of 56% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at TFI International 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. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying TFI International shares with their own money (free access).
If you want to buy a stock that is better than TFI International, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.