Yahoo Finance We Think ArcBest Corporation's (NASDAQ:ARCB) CEO Compensation Looks Fair
Key Insights
ArcBest will host its Annual General Meeting on 26th of April
Total pay for CEO Judy McReynolds includes US$900.0k salary
The overall pay is comparable to the industry average
ArcBest's EPS grew by 29% over the past three years while total shareholder return over the past three years was 93%
The performance at ArcBest Corporation (NASDAQ:ARCB) has been quite strong recently and CEO Judy McReynolds has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 26th of April. 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.
Check out our latest analysis for ArcBest
Comparing ArcBest Corporation's CEO Compensation With The Industry
At the time of writing, our data shows that ArcBest Corporation has a market capitalization of US$3.2b, and reported total annual CEO compensation of US$6.3m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$900k.
On comparing similar companies from the American Transportation industry with market caps ranging from US$2.0b to US$6.4b, we found that the median CEO total compensation was US$5.8m. So it looks like ArcBest compensates Judy McReynolds in line with the median for the industry. Moreover, Judy McReynolds also holds US$5.9m worth of ArcBest stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$900k | US$849k | 14% |
Other | US$5.4m | US$5.6m | 86% |
Total Compensation | US$6.3m | US$6.4m | 100% |
Speaking on an industry level, nearly 16% of total compensation represents salary, while the remainder of 84% is other remuneration. In ArcBest's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at ArcBest Corporation's Growth Numbers
ArcBest Corporation's earnings per share (EPS) grew 29% per year over the last three years. It saw its revenue drop 12% over the last year.
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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has ArcBest Corporation Been A Good Investment?
Boasting a total shareholder return of 93% over three years, ArcBest Corporation 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...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for ArcBest that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
