In 2006 Jeffrey Sanfilippo was appointed CEO of John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Jeffrey Sanfilippo's Compensation Compare With Similar Sized Companies?
According to our data, John B. Sanfilippo & Son, Inc. has a market capitalization of US$1.1b, and paid its CEO total annual compensation worth US$2.6m over the year to June 2019. Notably, that's an increase of 113% over the year before. While we always look at total compensation first, we note that the salary component is less, at US$585k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$2.6m.
That means Jeffrey Sanfilippo receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at John B. Sanfilippo & Son has changed over time.
Is John B. Sanfilippo & Son, Inc. Growing?
Over the last three years John B. Sanfilippo & Son, Inc. has grown its earnings per share (EPS) by an average of 3.9% per year (using a line of best fit). It achieved revenue growth of 1.4% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.
Has John B. Sanfilippo & Son, Inc. Been A Good Investment?
I think that the total shareholder return of 75%, over three years, would leave most John B. Sanfilippo & Son, Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Jeffrey Sanfilippo is paid around what is normal the leaders of comparable size companies.
While the growth could be better, the shareholder returns are clearly good. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling John B. Sanfilippo & Son shares (free trial).
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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