Bohn Crain has been the CEO of Radiant Logistics, Inc. (NYSEMKT:RLGT) since 2005, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Radiant Logistics
How Does Total Compensation For Bohn Crain Compare With Other Companies In The Industry?
At the time of writing, our data shows that Radiant Logistics, Inc. has a market capitalization of US$285m, and reported total annual CEO compensation of US$1.9m for the year to June 2020. We note that's an increase of 16% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$286k.
On examining similar-sized companies in the industry with market capitalizations between US$100m and US$400m, we discovered that the median CEO total compensation of that group was US$190k. This suggests that Bohn Crain is paid more than the median for the industry. What's more, Bohn Crain holds US$6.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$286k | US$325k | 15% |
| Other | US$1.6m | US$1.3m | 85% |
| Total Compensation | US$1.9m | US$1.6m | 100% |
On an industry level, roughly 19% of total compensation represents salary and 81% is other remuneration. In Radiant Logistics' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Radiant Logistics, Inc.'s Growth Numbers
Radiant Logistics, Inc.'s earnings per share (EPS) grew 79% per year over the last three years. It saw its revenue drop 4.7% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Radiant Logistics, Inc. Been A Good Investment?
With a total shareholder return of 30% over three years, Radiant Logistics, Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
To Conclude...
As we touched on above, Radiant Logistics, Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong over three years. We also think investor returns are steady over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Radiant Logistics that investors should be aware of in a dynamic business environment.
Important note: Radiant Logistics is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. 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.
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About NYSEAM:RLGT
Radiant Logistics
Operates as a third-party logistics company, provides technology-enabled global transportation and value-added logistics solutions primarily in the United States and Canada.
Flawless balance sheet with reasonable growth potential.
