It's Unlikely That Shareholders Will Increase Expeditors International of Washington, Inc.'s (NYSE:EXPD) Compensation By Much This Year

Key Insights

• Expeditors International of Washington to hold its Annual General Meeting on 7th of May

• CEO Jeff Musser's total compensation includes salary of US$100.0k

• The overall pay is comparable to the industry average

• Expeditors International of Washington's total shareholder return over the past three years was 1.1% while its EPS grew by 8.7% over the past three years

Performance at Expeditors International of Washington, Inc. (NYSE:EXPD) has been reasonably good and CEO Jeff Musser has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 7th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Expeditors International of Washington

Comparing Expeditors International of Washington, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Expeditors International of Washington, Inc. has a market capitalization of US$16b, and reported total annual CEO compensation of US$7.5m for the year to December 2023. Notably, that's a decrease of 31% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$100k.

For comparison, other companies in the American Logistics industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$6.0m. From this we gather that Jeff Musser is paid around the median for CEOs in the industry. What's more, Jeff Musser holds US$27m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 17% of total compensation out of all the companies we analyzed, while other remuneration made up 83% of the pie. Expeditors International of Washington has chosen to walk a path less trodden, opting to compensate its CEO with less of a traditional salary and more non-salary rewards over the last year. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Expeditors International of Washington, Inc.'s Growth

Expeditors International of Washington, Inc. has seen its earnings per share (EPS) increase by 8.7% a year over the past three years. It saw its revenue drop 46% over the last year.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Expeditors International of Washington, Inc. Been A Good Investment?

Expeditors International of Washington, Inc. has generated a total shareholder return of 1.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

Expeditors International of Washington prefers rewarding its CEO through non-salary benefits. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Expeditors International of Washington that investors should be aware of in a dynamic business environment.

Important note: Expeditors International of Washington 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. 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.