Bob Cantwell has been the CEO of B&G Foods Inc (NYSE:BGS) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Bob Cantwell’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that B&G Foods Inc has a market cap of US$2.0b, and is paying total annual CEO compensation of US$1.9m. That’s below the compensation, last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$3.6m.
A first glance this seems like a real positive for shareholders, since Bob Cantwell is paid less than the average compensation paid by similar sized companies. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at B&G Foods has changed from year to year.
Is B&G Foods Inc Growing?
Over the last three years B&G Foods Inc has grown its earnings per share (EPS) by an average of 32% per year. Its revenue is up 8.7% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
You might want to check this free visual report on analyst forecasts for future earnings.
Has B&G Foods Inc Been A Good Investment?
Given the total loss of 4.6% over three years, many shareholders in B&G Foods Inc are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
It looks like B&G Foods Inc pays its CEO less than similar sized companies. Since the business is growing, many would argue this suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. We’re not critical of the remuneration Bob Cantwell receives, but it would be good to see improved returns to shareholders before the remuneration grows too much.
When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.