We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Limoneira Company's (NASDAQ:LMNR) CEO For Now
Key Insights
Limoneira to hold its Annual General Meeting on 26th of March
Total pay for CEO Harold Edwards includes US$693.3k salary
The overall pay is 205% above the industry average
Limoneira's EPS grew by 73% over the past three years while total shareholder return over the past three years was 28%
CEO Harold Edwards has done a decent job of delivering relatively good performance at Limoneira Company (NASDAQ:LMNR) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26th of March. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Limoneira
How Does Total Compensation For Harold Edwards Compare With Other Companies In The Industry?
Our data indicates that Limoneira Company has a market capitalization of US$353m, and total annual CEO compensation was reported as US$3.7m for the year to October 2023. We note that's an increase of 83% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$693k.
For comparison, other companies in the American Food industry with market capitalizations ranging between US$200m and US$800m had a median total CEO compensation of US$1.2m. Hence, we can conclude that Harold Edwards is remunerated higher than the industry median. Furthermore, Harold Edwards directly owns US$4.6m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$693k | US$680k | 19% |
Other | US$3.0m | US$1.3m | 81% |
Total Compensation | US$3.7m | US$2.0m | 100% |
Talking in terms of the industry, salary represented approximately 28% of total compensation out of all the companies we analyzed, while other remuneration made up 72% of the pie. Limoneira 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.
Limoneira Company's Growth
Over the past three years, Limoneira Company has seen its earnings per share (EPS) grow by 73% per year. The trailing twelve months of revenue was pretty much the same as the prior period.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Limoneira Company Been A Good Investment?
With a total shareholder return of 28% over three years, Limoneira Company shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Limoneira (free visualization of insider trades).
Switching gears from Limoneira, 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.
