In 2006 Rusty Rush was appointed CEO of Rush Enterprises, Inc. (NASDAQ:RUSH.B). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Rusty Rush’s Compensation Compare With Similar Sized Companies?
According to our data, Rush Enterprises, Inc. has a market capitalization of US$1.4b, and pays its CEO total annual compensation worth US$7.3m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$1.5m. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO total compensation was US$4.1m.
As you can see, Rusty Rush is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Rush Enterprises, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Rush Enterprises has changed from year to year.
Is Rush Enterprises, Inc. Growing?
Over the last three years Rush Enterprises, Inc. has grown its earnings per share (EPS) by an average of 49% per year (using a line of best fit). Its revenue is up 15% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
Has Rush Enterprises, Inc. Been A Good Investment?
Boasting a total shareholder return of 60% over three years, Rush Enterprises, 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.
We compared the total CEO remuneration paid by Rush Enterprises, Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Rush Enterprises.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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