Yahoo Finance Shareholders Would Not Be Objecting To TFI International Inc.'s (TSE:TFII) CEO Compensation And Here's Why
Key Insights
TFI International to hold its Annual General Meeting on 25th of April
Salary of US$1.48m is part of CEO Alain Bedard's total remuneration
The overall pay is comparable to the industry average
TFI International's EPS grew by 25% over the past three years while total shareholder return over the past three years was 107%
We have been pretty impressed with the performance at TFI International Inc. (TSE:TFII) recently and CEO Alain Bedard deserves a mention for their role in it. Coming up to the next AGM on 25th of April, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
View our latest analysis for TFI International
Comparing TFI International Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that TFI International Inc. has a market capitalization of CA$16b, and reported total annual CEO compensation of US$12m for the year to December 2023. We note that's an increase of 14% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.5m.
On comparing similar companies in the Canada Transportation industry with market capitalizations above CA$11b, we found that the median total CEO compensation was US$11m. So it looks like TFI International compensates Alain Bedard in line with the median for the industry. Furthermore, Alain Bedard directly owns CA$876m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$1.5m | US$1.5m | 12% |
Other | US$10m | US$9.1m | 88% |
Total Compensation | US$12m | US$11m | 100% |
Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. TFI International is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at TFI International Inc.'s Growth Numbers
TFI International Inc. has seen its earnings per share (EPS) increase by 25% a year over the past three years. In the last year, its revenue is down 15%.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 TFI International Inc. Been A Good Investment?
Boasting a total shareholder return of 107% over three years, TFI International Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for TFI International that investors should look into moving forward.
Important note: TFI International is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.
