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John Roberts has been the CEO of J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) since 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does John Roberts’s Compensation Compare With Similar Sized Companies?
According to our data, J.B. Hunt Transport Services, Inc. has a market capitalization of US$12b, and pays its CEO total annual compensation worth US$859k. (This is based on the year to 2017). Notably, the salary of US$834k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO compensation was US$11m. (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 John Roberts takes less compensation than the CEOs of most other large companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at J.B. Hunt Transport Services has changed over time.
Is J.B. Hunt Transport Services, Inc. Growing?
On average over the last three years, J.B. Hunt Transport Services, Inc. has grown earnings per share (EPS) by 21% each year (using a line of best fit). In the last year, its revenue is up 20%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
You might want to check this free visual report on analyst forecasts for future earnings.
Has J.B. Hunt Transport Services, Inc. Been A Good Investment?
Most shareholders would probably be pleased with J.B. Hunt Transport Services, Inc. for providing a total return of 47% over three years. 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.
It looks like J.B. Hunt Transport Services, Inc. pays its CEO less than the average at large companies. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that John Roberts deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying J.B. Hunt Transport Services shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.