Yahoo Finance Shareholders May Be More Conservative With Covenant Logistics Group, Inc.'s (NASDAQ:CVLG) CEO Compensation For Now
Key Insights
Covenant Logistics Group will host its Annual General Meeting on 15th of May
Total pay for CEO David Parker includes US$799.6k salary
The total compensation is 547% higher than the average for the industry
Covenant Logistics Group's EPS grew by 26% over the past three years while total shareholder return over the past three years was 112%
Under the guidance of CEO David Parker, Covenant Logistics Group, Inc. (NASDAQ:CVLG) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Covenant Logistics Group
Comparing Covenant Logistics Group, Inc.'s CEO Compensation With The Industry
Our data indicates that Covenant Logistics Group, Inc. has a market capitalization of US$597m, and total annual CEO compensation was reported as US$1.4m for the year to December 2023. Notably, that's a decrease of 35% over the year before. Notably, the salary which is US$799.6k, represents a considerable chunk of the total compensation being paid.
In comparison with other companies in the American Transportation industry with market capitalizations ranging from US$200m to US$800m, the reported median CEO total compensation was US$214k. This suggests that David Parker is paid more than the median for the industry. What's more, David Parker holds US$91m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$800k | US$743k | 58% |
Other | US$582k | US$1.4m | 42% |
Total Compensation | US$1.4m | US$2.1m | 100% |
Speaking on an industry level, nearly 15% of total compensation represents salary, while the remainder of 85% is other remuneration. Covenant Logistics Group pays out 58% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Covenant Logistics Group, Inc.'s Growth Numbers
Covenant Logistics Group, Inc.'s earnings per share (EPS) grew 26% per year over the last three years. In the last year, its revenue is down 6.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Covenant Logistics Group, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Covenant Logistics Group, Inc. for providing a total return of 112% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which is concerning) in Covenant Logistics Group we think you should know about.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
