Bruce Saxild is the CEO of CTI Logistics Limited (ASX:CLX), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out 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$51m, and paid its CEO total annual compensation worth AU$580k over the year to June 2020. That's a fairly small increase of 5.0% over the previous year. In particular, the salary of AU$540.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$261m, we found that the median total CEO compensation was AU$521k. So it looks like CTI Logistics compensates Bruce Saxild in line with the median for the industry. Moreover, Bruce Saxild also holds AU$2.1m worth of CTI Logistics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$540k | AU$512k | 93% |
| Other | AU$40k | AU$40k | 7% |
| Total Compensation | AU$580k | AU$552k | 100% |
On an industry level, around 91% of total compensation represents salary and 9.3% is other remuneration. There isn't a significant difference between CTI Logistics and the broader market, in terms of salary allocation in the overall compensation package. 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 has reduced its earnings per share by 97% a year over the last three years. In the last year, its revenue is up 1.6%.
The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has CTI Logistics Limited Been A Good Investment?
Since shareholders would have lost about 38% over three years, some CTI Logistics Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, CTI Logistics pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for CTI Logistics you should be aware of, and 2 of them are significant.
Switching gears from CTI Logistics, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. 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.
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About ASX:CLX
Undervalued with adequate balance sheet and pays a dividend.
