Jeff Musser became the CEO of Expeditors International of Washington, Inc. (NASDAQ:EXPD) in 2013. This analysis aims first to contrast CEO compensation with other large companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Jeff Musser’s Compensation Compare With Similar Sized Companies?
Our data indicates that Expeditors International of Washington, Inc. is worth US$13b, and total annual CEO compensation is US$6.9m. (This is based on the year to December 2018). Notably, that’s an increase of 9.6% over the year before. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$100k. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$12m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
Most shareholders would consider it a positive that Jeff Musser takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Expeditors International of Washington has changed from year to year.
Is Expeditors International of Washington, Inc. Growing?
Expeditors International of Washington, Inc. has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). Its revenue is up 15% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.
Has Expeditors International of Washington, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Expeditors International of Washington, Inc. for providing a total return of 60% over three years. 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.
Expeditors International of Washington, Inc. is currently paying its CEO below what is normal for large companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Jeff Musser deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Expeditors International of Washington 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.
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.
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.