Is Kirby Corporation’s (NYSE:KEX) CEO Pay Fair?

David Grzebinski has been the CEO of Kirby Corporation (NYSE:KEX) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Kirby

How Does David Grzebinski’s Compensation Compare With Similar Sized Companies?

Our data indicates that Kirby Corporation is worth US$4.1b, and total annual CEO compensation is US$4.4m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$799k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$5.1m.

So David Grzebinski receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Kirby has changed over time.

NYSE:KEX CEO Compensation December 17th 18
NYSE:KEX CEO Compensation December 17th 18

Is Kirby Corporation Growing?

Over the last three years Kirby Corporation has grown its earnings per share (EPS) by an average of 15% per year. Its revenue is up 52% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

It could be important to check this free visual depiction of what analysts expect for the future.

Has Kirby Corporation Been A Good Investment?

I think that the total shareholder return of 36%, over three years, would leave most Kirby Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for David Grzebinski is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Kirby insiders are buying or selling shares.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings 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 editorial-team@simplywallst.com.