Here's Why It's Unlikely That Patriot Transportation Holding, Inc.'s (NASDAQ:PATI) CEO Will See A Pay Rise This Year

Shareholders will probably not be too impressed with the underwhelming results at Patriot Transportation Holding, Inc. (NASDAQ:PATI) recently. At the upcoming AGM on 02 February 2022, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Patriot Transportation Holding

How Does Total Compensation For Rob Sandlin Compare With Other Companies In The Industry?

Our data indicates that Patriot Transportation Holding, Inc. has a market capitalization of US$27m, and total annual CEO compensation was reported as US$519k for the year to September 2021. Notably, that's a decrease of 8.6% over the year before. Notably, the salary which is US$369.9k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below US$200m, reported a median total CEO compensation of US$519k. This suggests that Patriot Transportation Holding remunerates its CEO largely in line with the industry average. Moreover, Rob Sandlin also holds US$136k worth of Patriot Transportation Holding stock directly under their own name.

Component	2021	2020	Proportion (2021)
Salary	US$370k	US$354k	71%
Other	US$149k	US$213k	29%
Total Compensation	US$519k	US$568k	100%

On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. According to our research, Patriot Transportation Holding has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Patriot Transportation Holding, Inc.'s Growth

Patriot Transportation Holding, Inc. has reduced its earnings per share by 51% a year over the last three years. It saw its revenue drop 8.4% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Patriot Transportation Holding, Inc. Been A Good Investment?

Since shareholders would have lost about 10% over three years, some Patriot Transportation Holding, Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for Patriot Transportation Holding (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Patriot Transportation Holding, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.