General Mills, Inc.'s (NYSE:GIS) CEO Will Probably Have Their Compensation Approved By Shareholders
The performance at General Mills, Inc. (NYSE:GIS) has been quite strong recently and CEO Jeff Harmening has played a role in it. Coming up to the next AGM on 27 September 2022, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for General Mills
Comparing General Mills, Inc.'s CEO Compensation With The Industry
According to our data, General Mills, Inc. has a market capitalization of US$47b, and paid its CEO total annual compensation worth US$12m over the year to May 2022. That's a notable decrease of 21% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.
On comparing similar companies in the industry with market capitalizations above US$8.0b, we found that the median total CEO compensation was US$11m. From this we gather that Jeff Harmening is paid around the median for CEOs in the industry. Moreover, Jeff Harmening also holds US$17m worth of General Mills stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$1.3m | US$1.3m | 10% |
Other | US$11m | US$14m | 90% |
Total Compensation | US$12m | US$16m | 100% |
On an industry level, roughly 21% of total compensation represents salary and 79% is other remuneration. General Mills pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at General Mills, Inc.'s Growth Numbers
General Mills, Inc.'s earnings per share (EPS) grew 13% per year over the last three years. Its revenue is up 4.7% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has General Mills, Inc. Been A Good Investment?
Boasting a total shareholder return of 62% over three years, General Mills, Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for General Mills that you should be aware of before investing.
Important note: General Mills 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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