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What Did Horizon North Logistics Inc.'s (TSE:HNL) CEO Take Home Last Year?

In 2014 Rod Graham was appointed CEO of Horizon North Logistics Inc. (TSE:HNL). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Horizon North Logistics

How Does Rod Graham's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Horizon North Logistics Inc. has a market cap of CA$149m, and reported total annual CEO compensation of CA$1.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$600k. We looked at a group of companies with market capitalizations under CA$267m, and the median CEO total compensation was CA$210k.

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As you can see, Rod Graham is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Horizon North Logistics Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at Horizon North Logistics has changed over time.

TSX:HNL CEO Compensation, February 28th 2020
TSX:HNL CEO Compensation, February 28th 2020

Is Horizon North Logistics Inc. Growing?

On average over the last three years, Horizon North Logistics Inc. has grown earnings per share (EPS) by 38% each year (using a line of best fit). Its revenue is up 30% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.

Has Horizon North Logistics Inc. Been A Good Investment?

Since shareholders would have lost about 41% over three years, some Horizon North Logistics Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Horizon North Logistics Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Horizon North Logistics insiders are buying or selling shares.

Important note: Horizon North Logistics may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.