We Discuss Whether Saia, Inc.'s (NASDAQ:SAIA) CEO Is Due For A Pay Rise

Key Insights

• Saia to hold its Annual General Meeting on 25th of April
• Total pay for CEO Fritz Holzgrefe includes US$910.0k salary
• Total compensation is 31% below industry average
• Over the past three years, Saia's EPS grew by 36% and over the past three years, the total shareholder return was 118%

The solid performance at Saia, Inc. (NASDAQ:SAIA) has been impressive and shareholders will probably be pleased to know that CEO Fritz Holzgrefe has delivered. At the upcoming AGM on 25th of April, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Saia

How Does Total Compensation For Fritz Holzgrefe Compare With Other Companies In The Industry?

At the time of writing, our data shows that Saia, Inc. has a market capitalization of US$14b, and reported total annual CEO compensation of US$5.7m for the year to December 2023. That's a notable increase of 27% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$910k.

On comparing similar companies in the American Transportation industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$8.3m. This suggests that Fritz Holzgrefe is paid below the industry median. Moreover, Fritz Holzgrefe also holds US$6.5m worth of Saia stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$910k	US$875k	16%
Other	US$4.8m	US$3.6m	84%
Total Compensation	US$5.7m	US$4.5m	100%

On an industry level, around 16% of total compensation represents salary and 84% is other remuneration. Saia is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Saia, Inc.'s Growth

Over the past three years, Saia, Inc. has seen its earnings per share (EPS) grow by 36% per year. In the last year, its revenue is up 3.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Saia, Inc. Been A Good Investment?

Most shareholders would probably be pleased with Saia, Inc. for providing a total return of 118% 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Saia that investors should look into moving forward.

Switching gears from Saia, 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.