Expeditors International of Washington, Inc.'s (NASDAQ:EXPD) CEO Will Probably Have Their Compensation Approved By Shareholders

We have been pretty impressed with the performance at Expeditors International of Washington, Inc. (NASDAQ:EXPD) recently and CEO Jeff Musser deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 04 May 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Expeditors International of Washington

Comparing Expeditors International of Washington, Inc.'s CEO Compensation With the industry

According to our data, Expeditors International of Washington, Inc. has a market capitalization of US$18b, and paid its CEO total annual compensation worth US$7.4m over the year to December 2020. That's a notable increase of 15% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$100k.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$7.4m. So it looks like Expeditors International of Washington compensates Jeff Musser in line with the median for the industry. Moreover, Jeff Musser also holds US$20m worth of Expeditors International of Washington stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Expeditors International of Washington paid Jeff Musser a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Expeditors International of Washington, Inc.'s Growth Numbers

Expeditors International of Washington, Inc.'s earnings per share (EPS) grew 15% per year over the last three years. Its revenue is up 24% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Expeditors International of Washington, Inc. Been A Good Investment?

We think that the total shareholder return of 78%, over three years, would leave most Expeditors International of Washington, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Expeditors International of Washington prefers rewarding its CEO through non-salary benefits. 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Expeditors International of Washington that investors should think about before committing capital to this stock.

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.

If you decide to trade Expeditors International of Washington, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.