In 2015 Dave Jackson was appointed CEO of Knight-Swift Transportation Holdings Inc. (NYSE:KNX). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Dave Jackson’s Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Knight-Swift Transportation Holdings Inc. has a market cap of US$5.6b, and reported total annual CEO compensation of US$5.2m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$749k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.8m.
So Dave Jackson receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Knight-Swift Transportation Holdings, below.
Is Knight-Swift Transportation Holdings Inc. Growing?
On average over the last three years, Knight-Swift Transportation Holdings Inc. has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is down 9.4% over 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Knight-Swift Transportation Holdings Inc. Been A Good Investment?
Knight-Swift Transportation Holdings Inc. has generated a total shareholder return of 3.2% over three years, so most shareholders wouldn’t be too disappointed. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Dave Jackson is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. Shareholders may want to check for free if Knight-Swift Transportation Holdings insiders are buying or selling shares.
If you want to buy a stock that is better than Knight-Swift Transportation Holdings, this free list of high return, low debt companies is a great place to look.
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