Key Insights

• Marten Transport will host its Annual General Meeting on 7th of May
• Total pay for CEO Tim Kohl includes US$744.7k salary
• The overall pay is 80% below the industry average
• Marten Transport's EPS declined by 7.5% over the past three years while total shareholder return over the past three years was 4.2%

The performance at Marten Transport, Ltd. (NASDAQ:MRTN) has been rather lacklustre of late and shareholders may be wondering what CEO Tim Kohl is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 7th of May. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

Comparing Marten Transport, Ltd.'s CEO Compensation With The Industry

Our data indicates that Marten Transport, Ltd. has a market capitalization of US$1.4b, and total annual CEO compensation was reported as US$1.1m for the year to December 2023. Notably, that's a decrease of 35% over the year before. In particular, the salary of US$744.7k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the American Transportation industry with market capitalizations ranging between US$1.0b and US$3.2b had a median total CEO compensation of US$5.4m. Accordingly, Marten Transport pays its CEO under the industry median. What's more, Tim Kohl holds US$4.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. According to our research, Marten Transport has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Marten Transport, Ltd.'s Growth Numbers

Marten Transport, Ltd. has reduced its earnings per share by 7.5% a year over the last three years. In the last year, its revenue is down 15%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Marten Transport, Ltd. Been A Good Investment?

With a total shareholder return of 4.2% over three years, Marten Transport, Ltd. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Shareholder returns while positive, need to be looked at along with earnings, which have failed to grow and this could mean that the current momentum may not continue. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.

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 Marten Transport that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.