Yahoo Finance It's Unlikely That The CEO Of John Bean Technologies Corporation (NYSE:JBT) Will See A Huge Pay Rise This Year
Key Insights
John Bean Technologies' Annual General Meeting to take place on 10th of May
Salary of US$921.9k is part of CEO Brian Deck's total remuneration
The overall pay is comparable to the industry average
John Bean Technologies' EPS grew by 8.4% over the past three years while total shareholder loss over the past three years was 36%
Shareholders of John Bean Technologies Corporation (NYSE:JBT) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 10th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
See our latest analysis for John Bean Technologies
How Does Total Compensation For Brian Deck Compare With Other Companies In The Industry?
At the time of writing, our data shows that John Bean Technologies Corporation has a market capitalization of US$2.9b, and reported total annual CEO compensation of US$6.2m for the year to December 2023. That's a notable increase of 29% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$922k.
On examining similar-sized companies in the American Machinery industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$6.1m. From this we gather that Brian Deck is paid around the median for CEOs in the industry. Furthermore, Brian Deck directly owns US$9.2m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$922k | US$888k | 15% |
Other | US$5.3m | US$3.9m | 85% |
Total Compensation | US$6.2m | US$4.8m | 100% |
Talking in terms of the industry, salary represented approximately 15% of total compensation out of all the companies we analyzed, while other remuneration made up 85% of the pie. There isn't a significant difference between John Bean Technologies and the broader market, in terms of salary allocation in the overall compensation package. 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 John Bean Technologies Corporation's Growth Numbers
Over the past three years, John Bean Technologies Corporation has seen its earnings per share (EPS) grow by 8.4% per year. In the last year, its revenue is down 24%.
We generally like to see a little revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has John Bean Technologies Corporation Been A Good Investment?
The return of -36% over three years would not have pleased John Bean Technologies Corporation shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling John Bean Technologies (free visualization of insider trades).
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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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.
