Shareholders Will Most Likely Find John B. Sanfilippo & Son, Inc.'s (NASDAQ:JBSS) CEO Compensation Acceptable
Key Insights
John B. Sanfilippo & Son to hold its Annual General Meeting on 2nd of November
Salary of US$790.8k is part of CEO Jeffrey Sanfilippo's total remuneration
The overall pay is comparable to the industry average
John B. Sanfilippo & Son's EPS grew by 4.8% over the past three years while total shareholder return over the past three years was 59%
Under the guidance of CEO Jeffrey Sanfilippo, John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 2nd of November. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for John B. Sanfilippo & Son
Comparing John B. Sanfilippo & Son, Inc.'s CEO Compensation With The Industry
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$2.8m over the year to June 2023. We note that's an increase of 59% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$791k.
For comparison, other companies in the American Food industry with market capitalizations ranging between US$400m and US$1.6b had a median total CEO compensation of US$3.3m. From this we gather that Jeffrey Sanfilippo is paid around the median for CEOs in the industry. Furthermore, Jeffrey Sanfilippo directly owns US$11m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$791k | US$764k | 28% |
Other | US$2.0m | US$1.0m | 72% |
Total Compensation | US$2.8m | US$1.8m | 100% |
On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. There isn't a significant difference between John B. Sanfilippo & Son and the broader market, in terms of salary allocation in the overall compensation package. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
John B. Sanfilippo & Son, Inc.'s Growth
John B. Sanfilippo & Son, Inc.'s earnings per share (EPS) grew 4.8% per year over the last three years. It achieved revenue growth of 4.6% over the last year.
We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has John B. Sanfilippo & Son, Inc. Been A Good Investment?
We think that the total shareholder return of 59%, 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.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for John B. Sanfilippo & Son that investors should think about before committing capital to this stock.
Switching gears from John B. Sanfilippo & Son, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
