Stock Analysis
Victor Garcia became the CEO of CAI International, Inc. (NYSE:CAI) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for CAI International
How Does Victor Garcia's Compensation Compare With Similar Sized Companies?
Our data indicates that CAI International, Inc. is worth US$498m, and total annual CEO compensation was reported as US$2.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$713k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from US$200m to US$800m, and the median CEO total compensation was US$1.7m.
As you can see, Victor Garcia is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CAI International, Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at CAI International, below.
Is CAI International, Inc. Growing?
On average over the last three years, CAI International, Inc. has grown earnings per share (EPS) by 53% each year (using a line of best fit). In the last year, its revenue is up 20%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has CAI International, Inc. Been A Good Investment?
I think that the total shareholder return of 114%, over three years, would leave most CAI 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...
We compared the total CEO remuneration paid by CAI International, Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling CAI International shares (free trial).
If you want to buy a stock that is better than CAI International, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
