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John B. Sanfilippo & Son, Inc.'s (NASDAQ:JBSS) CEO Compensation Is Looking A Bit Stretched At The Moment

CEO Jeffrey Sanfilippo has done a decent job of delivering relatively good performance at John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) recently. As shareholders go into the upcoming AGM on 27 October 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for John B. Sanfilippo & Son

How Does Total Compensation For Jeffrey Sanfilippo Compare With Other Companies In The Industry?

At the time of writing, our data shows that John B. Sanfilippo & Son, Inc. has a market capitalization of US$954m, and reported total annual CEO compensation of US$3.5m for the year to June 2021. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$685k.

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On comparing similar companies from the same industry with market caps ranging from US$400m to US$1.6b, we found that the median CEO total compensation was US$986k. Accordingly, our analysis reveals that John B. Sanfilippo & Son, Inc. pays Jeffrey Sanfilippo north of the industry median. What's more, Jeffrey Sanfilippo holds US$8.7m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2021

2020

Proportion (2021)

Salary

US$685k

US$643k

19%

Other

US$2.8m

US$3.0m

81%

Total Compensation

US$3.5m

US$3.6m

100%

Speaking on an industry level, nearly 33% of total compensation represents salary, while the remainder of 67% is other remuneration. John B. Sanfilippo & Son sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

John B. Sanfilippo & Son, Inc.'s Growth

John B. Sanfilippo & Son, Inc. has seen its earnings per share (EPS) increase by 22% a year over the past three years. In the last year, its revenue is down 2.5%.

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 John B. Sanfilippo & Son, Inc. Been A Good Investment?

Most shareholders would probably be pleased with John B. Sanfilippo & Son, Inc. for providing a total return of 36% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for John B. Sanfilippo & Son (1 is a bit concerning!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.