John Wiehoff has been the CEO of C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) since 2002. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does John Wiehoff’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that C.H. Robinson Worldwide, Inc. has a market cap of US$12b, and is paying total annual CEO compensation of US$6.0m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.2m. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at C.H. Robinson Worldwide has changed over time.
Is C.H. Robinson Worldwide, Inc. Growing?
On average over the last three years, C.H. Robinson Worldwide, Inc. has grown earnings per share (EPS) by 8.1% each year (using a line of best fit). It achieved revenue growth of 12% over the last year.
I think the revenue growth is good. And the modest growth in earnings per share isn’t bad, either. So while performance isn’t amazing, we think it really does seem quite respectable. You might want to check this free visual report on analyst forecasts for future earnings.
Has C.H. Robinson Worldwide, Inc. Been A Good Investment?
With a total shareholder return of 29% over three years, C.H. Robinson Worldwide, Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
It appears that C.H. Robinson Worldwide, Inc. remunerates its CEO below most large companies.
John Wiehoff receives relatively low remuneration compared to other large companies. But the company isn’t exactly firing on all cylinders, from my perspective. So shareholders may not be elated, but they shouldn’t be worried about the CEO compensation, either. Shareholders may want to check for free if C.H. Robinson Worldwide insiders are buying or selling shares.
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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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.