Increases to CTI Logistics Limited's (ASX:CLX) CEO Compensation Might Cool off for now

Key Insights

• CTI Logistics to hold its Annual General Meeting on 23rd of November
• Total pay for CEO Bruce Saxild includes AU$591.2k salary
• Total compensation is 188% above industry average
• CTI Logistics' total shareholder return over the past three years was 162% while its EPS grew by 77% over the past three years

Performance at CTI Logistics Limited (ASX:CLX) has been reasonably good and CEO Bruce Saxild has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 23rd of November. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for CTI Logistics

How Does Total Compensation For Bruce Saxild Compare With Other Companies In The Industry?

According to our data, CTI Logistics Limited has a market capitalization of AU$116m, and paid its CEO total annual compensation worth AU$640k over the year to June 2023. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at AU$591.2k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Australia Logistics industry with market capitalizations under AU$307m, the reported median total CEO compensation was AU$222k. Hence, we can conclude that Bruce Saxild is remunerated higher than the industry median. What's more, Bruce Saxild holds AU$3.9m 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	AU$591k	AU$594k	92%
Other	AU$49k	AU$47k	8%
Total Compensation	AU$640k	AU$641k	100%

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. It's interesting to note that CTI Logistics pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at CTI Logistics Limited's Growth Numbers

CTI Logistics Limited's earnings per share (EPS) grew 77% per year over the last three years. Its revenue is up 6.6% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has CTI Logistics Limited Been A Good Investment?

Most shareholders would probably be pleased with CTI Logistics Limited for providing a total return of 162% over three years. 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 decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for CTI Logistics that investors should think about before committing capital to this stock.

Important note: CTI Logistics 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.