In This Article:
Greg Gantt has been the CEO of Old Dominion Freight Line, Inc. (NASDAQ:ODFL) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Old Dominion Freight Line pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Old Dominion Freight Line
Comparing Old Dominion Freight Line, Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that Old Dominion Freight Line, Inc. has a market capitalization of US$24b, and reported total annual CEO compensation of US$7.3m for the year to December 2019. That's a notable increase of 51% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$728k.
In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$11m. That is to say, Greg Gantt is paid under the industry median. What's more, Greg Gantt 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 | 2019 | 2018 | Proportion (2019) |
| Salary | US$728k | US$616k | 10% |
| Other | US$6.6m | US$4.2m | 90% |
| Total Compensation | US$7.3m | US$4.8m | 100% |
On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. Old Dominion Freight Line pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Old Dominion Freight Line, Inc.'s Growth
Over the past three years, Old Dominion Freight Line, Inc. has seen its earnings per share (EPS) grow by 25% per year. Its revenue is down 4.3% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Old Dominion Freight Line, Inc. Been A Good Investment?
Most shareholders would probably be pleased with Old Dominion Freight Line, Inc. for providing a total return of 153% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.