Here's What We Think About John Bean Technologies Corporation's (NYSE:JBT) CEO Pay
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Tom Giacomini became the CEO of John Bean Technologies Corporation (NYSE:JBT) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for John Bean Technologies
How Does Tom Giacomini's Compensation Compare With Similar Sized Companies?
According to our data, John Bean Technologies Corporation has a market capitalization of US$3.9b, and pays its CEO total annual compensation worth US$4.9m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$859k. We looked at a group of companies with market capitalizations from US$2.0b to US$6.4b, and the median CEO total compensation was US$5.2m.
So Tom Giacomini is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at John Bean Technologies has changed from year to year.
Is John Bean Technologies Corporation Growing?
John Bean Technologies Corporation has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has John Bean Technologies Corporation Been A Good Investment?
Most shareholders would probably be pleased with John Bean Technologies Corporation for providing a total return of 104% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Tom Giacomini is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling John Bean Technologies shares (free trial).
Important note: John Bean Technologies 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.
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.
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. Thank you for reading.
