We Think Shareholders Will Probably Be Generous With TFI International Inc.'s (TSE:TFII) CEO Compensation

Key Insights

• TFI International's Annual General Meeting to take place on 25th of April
• Total pay for CEO Alain Bedard includes US$1.48m salary
• Total compensation is similar to the industry average
• Over the past three years, TFI International's EPS grew by 25% and over the past three years, the total shareholder return was 107%

We have been pretty impressed with the performance at TFI International Inc. (TSE:TFII) recently and CEO Alain Bedard deserves a mention for their role in it. Coming up to the next AGM on 25th of April, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for TFI International

How Does Total Compensation For Alain Bedard Compare With Other Companies In The Industry?

According to our data, TFI International Inc. has a market capitalization of CA$16b, and paid its CEO total annual compensation worth US$12m over the year to December 2023. That's a notable increase of 14% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.5m.

In comparison with other companies in the Canada Transportation industry with market capitalizations over CA$11b, the reported median total CEO compensation was US$11m. This suggests that TFI International remunerates its CEO largely in line with the industry average. Furthermore, Alain Bedard directly owns CA$876m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$1.5m	US$1.5m	12%
Other	US$10m	US$9.1m	88%
Total Compensation	US$12m	US$11m	100%

Talking in terms of the industry, salary represented approximately 13% of total compensation out of all the companies we analyzed, while other remuneration made up 87% of the pie. TFI International is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

TFI International Inc.'s Growth

TFI International Inc. has seen its earnings per share (EPS) increase by 25% a year over the past three years. It saw its revenue drop 15% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has TFI International Inc. Been A Good Investment?

Boasting a total shareholder return of 107% over three years, TFI International Inc. has done well by shareholders. 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.

To Conclude...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed 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 is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for TFI International that investors should think about before committing capital to this stock.

Important note: TFI International 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.

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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.