It Looks Like Shareholders Would Probably Approve Universal Logistics Holdings, Inc.'s (NASDAQ:ULH) CEO Compensation Package

Key Insights

• Universal Logistics Holdings' Annual General Meeting to take place on 24th of April
• Total pay for CEO Tim Phillips includes US$602.0k salary
• The overall pay is comparable to the industry average
• Universal Logistics Holdings' EPS grew by 26% over the past three years while total shareholder return over the past three years was 38%

The performance at Universal Logistics Holdings, Inc. (NASDAQ:ULH) has been quite strong recently and CEO Tim Phillips has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 24th of April. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Universal Logistics Holdings

How Does Total Compensation For Tim Phillips Compare With Other Companies In The Industry?

At the time of writing, our data shows that Universal Logistics Holdings, Inc. has a market capitalization of US$865m, and reported total annual CEO compensation of US$1.2m for the year to December 2023. That's just a smallish increase of 7.4% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$602k.

In comparison with other companies in the American Transportation industry with market capitalizations ranging from US$400m to US$1.6b, the reported median CEO total compensation was US$1.1m. From this we gather that Tim Phillips is paid around the median for CEOs in the industry. What's more, Tim Phillips holds US$1.3m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	US$602k	US$559k	49%
Other	US$630k	US$588k	51%
Total Compensation	US$1.2m	US$1.1m	100%

Talking in terms of the industry, salary represented approximately 16% of total compensation out of all the companies we analyzed, while other remuneration made up 84% of the pie. Universal Logistics Holdings pays out 49% of remuneration in the form of a salary, significantly higher than the industry average. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Universal Logistics Holdings, Inc.'s Growth

Over the past three years, Universal Logistics Holdings, Inc. has seen its earnings per share (EPS) grow by 26% per year. In the last year, its revenue is down 18%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Universal Logistics Holdings, Inc. Been A Good Investment?

We think that the total shareholder return of 38%, over three years, would leave most Universal Logistics Holdings, Inc. shareholders smiling. 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.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Universal Logistics Holdings that you should be aware of before investing.

Switching gears from Universal Logistics Holdings, 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.