Shareholders May Not Be So Generous With TFI International Inc.'s (TSE:TFII) CEO Compensation And Here's Why

By
Simply Wall St
Published
April 21, 2021
TSX:TFII

CEO Alain Bedard has done a decent job of delivering relatively good performance at TFI International Inc. (TSE:TFII) recently. As shareholders go into the upcoming AGM on 27 April 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for TFI International

Comparing TFI International Inc.'s CEO Compensation With the industry

According to our data, TFI International Inc. has a market capitalization of CA$8.8b, and paid its CEO total annual compensation worth US$9.5m over the year to December 2020. That's a notable increase of 16% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.4m.

On examining similar-sized companies in the industry with market capitalizations between CA$5.0b and CA$15b, we discovered that the median CEO total compensation of that group was US$3.7m. Accordingly, our analysis reveals that TFI International Inc. pays Alain Bedard north of the industry median. Moreover, Alain Bedard also holds CA$420m worth of TFI International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary US$1.4m US$1.4m 15%
Other US$8.1m US$6.8m 85%
Total CompensationUS$9.5m US$8.2m100%

On an industry level, around 16% of total compensation represents salary and 84% is other remuneration. Our data reveals that TFI International allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
TSX:TFII CEO Compensation April 21st 2021

A Look at TFI International Inc.'s Growth Numbers

TFI International Inc. has seen its earnings per share (EPS) increase by 30% a year over the past three years. It saw its revenue drop 3.1% over the last year.

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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has TFI International Inc. Been A Good Investment?

We think that the total shareholder return of 193%, over three years, would leave most TFI International Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 4 warning signs for TFI International that investors should be aware of in a dynamic business environment.

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. 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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